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- Written by: Dennis Fordham
Spouses and their children who receive SSI and/or MediCal needs based benefits, and are part of a divorce, may encounter complications involving the receipt and/or payment of either spousal or child support and their continued eligibility to receive needs based government benefits.
The receipt or payment of such support payments create special issues where Special Needs Trusts (”SNT”) are involved.
Often a SNT is established during the divorce proceedings to receive the support payments. Otherwise the receipt of either spousal or child support would negatively affect continued eligibility for such benefits.
A first party SNT can be established either by an authorized person – a parent, grandparent, or conservator – or by way of a court order, although no specific authority exists for a family court to issue such an order.
Any child support payments awarded to a disabled child receiving needs based government benefits will have to be irrevocably assigned to a first party SNT.
Otherwise payments will count as income to the child and negatively affect needs based government benefits.
The assignment implicates conflicting federal and state laws. These are best harmonized when both spouses consent to awarding child support payments to a first party SNT for the child’s benefit. Payments only, and not the underlying right to such support, can be assigned.
Now consider a beneficiary of an SNT who also pays spousal and/or child support.
Do the SNT distributions by the trustee count as income when the court sets the amount of support that the SNT beneficiary must pay? Furthermore, may the SNT trustee pay such support payments, on behalf of the beneficiary, to his or her spouse and or child?
A spouse's income is considered by the court when computing the amount of the support obligation that they must pay How then does being a beneficiary of an SNT impact the calculation of that obligation? This is an unsettled legal issue.
That said, given that trust distributions are fully discretionary with the SNT trustee it is unlikely that income generated inside the SNT will count unless and until actual distributions made on behalf of the beneficiary.
Next, under California law, the Trustee of an SNT can be forced to pay such obligations owed by a beneficiary to his or her ex-spouse or child because the right of an ex-spouse or child to receive support payments is safeguarded.
That said, however, in the case of a first party SNT (I.e., one created on behalf of a disabled person to receive payments or assets belonging to the beneficiary) this safeguard may conflict with the federal requirement that a first party SNT be solely for the benefit of the beneficiary and no one else.
Distributions by the trustee to pay support obligations owed to the beneficiary's spouse or child might arguabley violate this requirement and so jeopardize the SNT's validity under the very federal law that authorizes the creation of first party SNT's.
Accordingly, whenever possible, such support obligations should be paid using other income, including the SSI income, received by the beneficiary.
The trustee of the SNT can then make offsetting distributions on behalf of the beneficiary to cover unmet expenses.
The foregoing discussion shows the complications in a divorce where either spouse and/or any disabled children receive needs based government benefits. It is crucial that either the receipt or payment by a beneficiary of a SNT of any spousal or child support be implemented in a manner that preserves SSI and Medi-Cal benefits.
In such divorces, therefore, the concerned parties may wish to involve a trust law attorney knowledgeable in special needs trusts before the family law court issues an order.
Dennis A. Fordham, attorney (LL.M. tax studies), is a State Bar Certified Specialist in Estate Planning, Probate and Trust Law. His office is at 55 First St., Lakeport, California. Dennis can be reached by e-mail at
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- Written by: Elizabeth Larson
CLEARLAKE, Calif. – A local highway rehabilitation project is about to get rolling again thanks to the selection of a new contractor.
Caltrans said Thursday that the Highway 53 rehabilitation project will resume on Monday, Aug. 13.
The project includes installing a traffic signal at Olympic Drive, widening shoulders, adding and lengthening turn pockets at intersections, and repaving more than four miles of Highway 53 from just north of 40th Avenue to Highway 20, Caltrans reported.
The project has been hold for almost eight months, Caltrans spokesman Phil Frisbie told Lake County News.
Frisbie said the original contractor was Sierra Equipment Rental of Glenn.
The company began to experience problems last fall and then defaulted, Frisbie said.
He said when the company defaulted on its contract, its bonding company took over and worked with Caltrans to rebid the project.
The contract was recently awarded to Teichert Construction of Davis, according to Frisbie.
Frisbie said the late start this summer will push the project’s completion out to next fall.
“We are, however, working with the contractor to try to finish the new turn lanes at Olympic Drive as soon as possible so we can activate the new traffic signal,” Frisbie said.
Email Elizabeth Larson at
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- Written by: Lake County News Reports
LAKEPORT, Calif. – Clear Lake High School Sports Foundation captured first place honors Saturday at the third annual Grillin’ on the Green fundraiser for Westside Community Park.
Nearly 200 people enjoyed a dinner of barbecue samples, desserts, music by EarReverence and by Andy Rossoff, a car show provided by the No Name Car Club and the National Antique Auto Club, children’s activities, and the Lakeport Kiwanis Club’s Washer Tournament.
The event took place on the existing soccer fields at Westside Community Park.
The CLHS Sports Foundation team, led by Casey Dye, was victorious in the barbecue cookoff when the team’s pulled pork and slaw was selected as the favorite in the People’s Choice voting.
The ballot tallies revealed that second place went to the Early Lake Lions Club for its marinated flank steak, and third place to the Lakeport Lions Club for its beef kabobs.
A variety of offerings included sausage and slaw by the Grillin’ for Fun team, vegetable kabobs by the combined Lakeport and Kelseyville Rotary Clubs, chicken by the city of Lakeport team and ribs by the Lakeport Kiwanis.
The Lakeport Lions captured bragging rights for its decorated booth as attendees were asked to vote for their favorites. Second place in the decorated booth category went to the city of Lakeport.
“We had cooperation from the weather and enjoyed terrific food and fun at this year’s Grillin' on the Green,” said Park Committee Chair Dennis Rollins. “Thanks to all who helped by selling tickets, setting up and assisting at the event. It took a lot of people to pull this off. We are especially grateful to our volunteers and our sponsors.”
A rough head count at the event check-in showed about 170 people in attendance, plus grillers, car club members and youth volunteers.
Initial numbers indicate more than $4,000 was realized from ticket sales and beverage sales and donations made at the event, according to committee members.
All proceeds from the event will benefit the next phase of development of Westside Community Park, which will include soccer fields, a regulation baseball field, and a combination Little League baseball/softball field. Work on these fields is continuing this summer.
Event sponsors included the Keeling-Barnes Family Foundation, which is pledging matching funds up to $5,000; KNTI Radio; Lake County News; Lake County Publishing; Dr. Alexander McGeoch, DDS; Strohmeier’s Auto Center; Margaret Silveira; and the Ustrud-Rollins Family.
Several businesses, organizations and individuals contributed in-kind services and donations. Kenny Parlet/Lakeview Market supplied baked beans as one of the side dishes, while Nancy Ruzicka/Ruzicka Associates and Karan Mackey/Lakeport English Inn provided desserts. Snow cones were available for purchase from Marta and Domingo Villa.
Westside Community Park, located at 1401 Westside Park Road, is a city of Lakeport recreational facility that was established 14 years ago.
The nonprofit Park Committee is developing the park in conjunction with the city of Lakeport, volunteers, and numerous contributions by individuals and businesses dedicated to constructing a recreational facility for the youth and adults of Lake County.
The park currently is four acres consisting of two soccer fields, a parking lot, a picnic area overlooking the soccer fields and an ADA compliant walking path.
Future plans for development of the park’s full 60 acres include baseball/softball fields, a BMX track, a skateboard facility, football fields, a children’s play structure, a dog park, walking paths and a horse arena.
More information about park development and the Westside Community Park Committee is available from Rollins, 707-263-7091, and from the Web site, www.westsidecommunitypark.org .
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- Written by: Lake County News reports
LOWER LAKE, Calif. – The compliance checks of two marijuana grow sites in the Lower Lake area last week resulted in two arrests and the eradication of 158 marijuana plants.
Sgt. Steve Brooks of the Lake County Sheriff’s Office said Kelseyville residents Frank Phillip Frazza, 23, and 24-year-old Thomas Jameson Whyte were arrested during the checks.
On Thursday, Aug. 2, at approximately 12:30 p.m. the Lake County Narcotics Task Force, a California Department of Fish and Game Officer and Lake County Code Enforcement conducted a compliance check on Cantwell Ranch Road in Lower Lake, Brooks said
Upon their arrival, Brooks said detectives contacted Frazza and Whyte, who have adjoining properties on Cantwell Ranch Road with no permitted structures.
Brooks said both subjects stated they grew marijuana for a collective in Los Angeles and had numerous medical recommendations. Neither Frazza nor Whyte knew any of the subjects listed on the recommendations.
Frazza had 73 marijuana plants growing outside on his property and Whyte had 85 marijuana plants growing outside on his property. Brooks said Whyte also had a large green house on the property for which he did not have a permit.
Both grow sites were determined to be in violation of Lake County Ordinance No. 2977 and all of the marijuana plants were eradicated, according to Brooks.
Both Frazza and Whyte were arrested for cultivation of marijuana and possession of marijuana for sale, Brooks said. They were transported to the Lake County Hill Road Correctional Facility and booked.
The Sheriff’s Narcotics Task Force can be contacted through its anonymous tip line at 707-263-3663.
