A third-party supplemental needs trust for children to establish for their parents.

Document Preview Parental Protection Trust

The Parental Protection Trust is available in ElderDocx and is based on the Third-Party Supplemental Needs Trust but is intended for children to establish for their parents. It is designed as a grantor trust as to the trustmakers and upon the last beneficiary's death, the assets come back to the trustmakers. So, if children establish the trust for their parents, all trust income is taxed to the children and upon the last parent's death, the remainder goes back to the children or their trusts.

When an elder law plan includes outright gifting to children, the children might find themselves with excess resources that they would like to put aside for their parents' care, if needed. This trust facilitates that. Also, in the right case, and when the parents are insurable, the trustees might choose to invest trust funds in an indemnity life insurance policy with a long term care rider. This technique can provide significant benefits, not only for the parents, but also for the children.

EC Parental Protection Trust™ Documents

  1. EC Parental Protection Trust™
  2. Certification of Trust
  3. Trust Amendment
  4. Trustee Instruction Letter
  5. Grantor Trust Letter
  6. CPA Letter
  7. Third-Party Trust Letter to SSA/ Medicaid
  8. Trustee Letter re Duty to Report
  9. ISM Reporting Letter