This is only for My sister, an executor and trustee of my Mom's will, after receiving a copy of our previous
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Customer: This is only for DebraMy sister, an executor and trustee of my Mom's will, after receiving a copy of our previous conversation, has replied to my proposal to release the maximum allowable inheritance before PWD "grab back or termination" with:Quote
Regarding your share, this is the exact wording from Mom's will."D(iii) If my son Kevin Corlis O’Brien is living at the death of the survivor of my husband and myself the equal share so appropriated for Kevin (herein called the “Kevin Share”) is to be dealt with as follows:During Kevin’s lifetime my Trustee is to stand possessed of the Kevin Share and is to invest and keep invested the same with discretion from time to time to pay to Kevin or apply on his behalf for the acquisition of goods and services which generally addressneeds arising from his disability,all or any parts of the capital and income (or either) of the Kevin share as may thereby exhaust the said capital for his benefit without regard to any interest, vested or not, or any other beneficiary of my estate."
I have written... but not yet sent... my reply and would appreciate your opinion, advice and suggestion on how the situation should be dealt with and whether I should indeed send the following:
Is this your way of saying that you will deny me my inheritance?
If so…. you’ll have to hold off on the “dispersal” and tell everyone that they may be in for a yet longer wait.You know very well that there has never been, and never will be, any financial “needs arising from his disability,” that were not, and will not be, covered by the PWD.Mom had had (on a lawyer’s advice) written this commonly used phrase as a dodge to government PWD grab back or termination several years before the government wised up and changed the laws permitting PWD recipients to receive up to $100,000.00 of any inheritance… which at that time… became common practice to release the maximum allowable to the PWD recipients themselves. Those already with these “dead” discretionary trust funds had a hell of an expensive time recovering their money from such trust funds (usually penalized by the Trust companies since they would lose the free use of it not to mention... the fees.) Mom also had had written:"…for his benefit without regard to any interest, vested or not, or any other beneficiary of my estate."b) From and after the end of Kevin’s lifetime the balance (if any) then remaining of the Kevin share is to be divided equally among such of my remaining children as are living at his death.”Any of my share that goes into a discretionary trust become “dead money” that will be of no use to anyone (except the Trust Companies) since conditions will permit no one to withdraw any of it… at least not until after I’m dead …when you and any other surviving siblings can claim a share of the whole of it for yourselves, and I will have had nothing. It would be a sad and suspicious occurrence if you intend to go against Mom’s intent and deny me my inheritance…. How do you think this will look to judge?It would be possible for me to obtain the entire remains of my share if a sufficient portion were to be used to obtain a motor vehicle, (the possession of which is exempt from the total asset assessment… and Mom has set the precedence once already) and then the rest, not exceeding $100,000 can be put into my hands without any effect on my PWD pension (as was her intent.) Lack of a vehicle, more than anything else (and greatly)… has been a “need that has arisen” that, while not directly affecting my disability, (as nothing has to date and is ever likely to do so...) has certainly effected my health.This common practice of releasing the allowable maximum, (Mom’s spoken intent to me and) as intended by government, would also relieve you and Terry of the responsibility, and hassle (not to mention the expense to me) of dealing with the administration of a trust fund as well as the avoidance of all the trust and accountant’s fees. Tax on the $100,000’s annual earnings would have to reach the unlikely height of over $10,000 (10%) in any given year before it would impact my tax position and total assets plus their earnings will have to be kept below the $100,000 ceiling to avoid future grab back of the PWD pension.
My sister has written previously that they expect to dispense the inheritance funds sometime in January 2021. Your opinion suggestions and editing will be most welcome as I hope to avoid a legal dispute over this issue.
Answered by Debra in 5 hours 1 year ago
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