At the Law Offices of Robert P. Bergman we help families in Redwood Shores and the surrounding San Mateo County area plan for the long-term care and financial security of loved ones with disabilities through thoughtfully drafted special needs trust arrangements. A special needs trust is a legal tool designed to preserve an individual’s eligibility for public benefits while allowing family resources to be used for supplemental care and quality-of-life needs. Our approach is client-centered and practical. We work with families to explain options, draft the right trust instruments such as third-party trusts, first-party trusts, or pooled trusts, and coordinate documents like Pour-Over Wills and HIPAA authorizations.
Creating a special needs trust involves more than paperwork; it requires careful planning to align family goals with benefit rules and long-term living needs. We assist with decisions about trusteeship, funding strategies, and how the trust interacts with Medi-Cal and Supplemental Security Income. Planning often includes related documents such as a Revocable Living Trust, Last Will and Testament, Financial Power of Attorney, Advance Health Care Directive, Certification of Trust, and Guardianship Nominations. Our office provides clear guidance on next steps, helps prepare petitions like Heggstad or Trust Modification Petitions when needed, and supports families through funding and administration of the trust.
A properly structured special needs trust can preserve eligibility for public benefits while allowing discretionary distributions for housing, education, therapy, transportation, and other items not provided by government programs. By separating trust funds from countable resources, the beneficiary can continue to receive Medi-Cal and SSI while enjoying an improved standard of living funded by trust assets. This planning reduces the risk that an inheritance, settlement, or family savings will unintentionally disqualify someone from essential services. The trust also provides a framework for successor trustee appointment, oversight, and specific distribution standards tailored to the beneficiary’s needs.
The Law Offices of Robert P. Bergman is based in the Bay Area and serves clients across San Mateo County, including Redwood Shores, with practical estate planning solutions designed around family goals and local rules. Robert P. Bergman and the team focus on clear communication, careful drafting, and personalized plans that tie together trusts, wills, powers of attorney, and beneficiary designations. Whether the need is a third-party special needs trust funded by parents or a first-party trust for someone with assets, the firm prepares the necessary documents such as a Certification of Trust, Pour-Over Will, HIPAA Authorization, and guardianship nominations when appropriate.
A special needs trust is created to hold assets for a person with disabilities while preserving that person’s eligibility for means-tested government benefits. First-party trusts are funded with the beneficiary’s own assets and often include payback provisions, while third-party trusts are funded by family members and typically avoid payback to the state. Pooled trusts are another option, administered by charitable organizations that pool resources for management efficiency. The appropriate choice depends on the source of funds, the beneficiary’s age, and long-term goals for care and financial flexibility.
The process of establishing a special needs trust includes selecting a trustee, drafting clear distribution standards, funding the trust, and documenting how trust resources will supplement rather than replace public benefits. Funding can occur during life through transfers, beneficiary designations, or through an estate plan at death using a Pour-Over Will or Retirement Plan Trust. Trust language must be precise to meet government rules and to address health care, housing, education, and recreational needs while maintaining eligibility for benefits such as Medi-Cal and Supplemental Security Income.
A special needs trust holds and manages assets for a beneficiary with disabilities, providing for items that public benefits do not cover. Its purpose is to improve quality of life without creating countable resources that could jeopardize benefits eligibility. Trustees manage distributions for allowable purposes such as education, transportation, therapies, and recreational activities. The trust can also ensure continuity of care if family caregivers are unable to provide support. Clear trust provisions, combined with complementary estate documents like a Last Will and Testament and Financial Power of Attorney, help maintain stability and predictable support for the beneficiary.
Effective special needs trust planning addresses several core elements: identifying the beneficiary’s needs and public benefits, drafting distribution standards that supplement benefits, choosing a reliable trustee, determining funding sources, and including language for successor trustees and accountings. The trust may incorporate instructions for healthcare coordination and HIPAA authorization to access medical information. Administration includes regular reviews to ensure distributions remain compliant with benefit rules and to make adjustments as the beneficiary’s circumstances or applicable laws change. Documentation such as a Certification of Trust helps verify authority when dealing with financial institutions.
To navigate special needs planning it helps to understand commonly used terms: beneficiary, trustee, first-party trust, third-party trust, pooled trust, pour-over will, Heggstad petition, Certification of Trust, HIPAA authorization, and guardianship nominations. Each term reflects a different aspect of planning, from the document that transfers assets at death to petitions used to clarify trust funding or transfer assets. Familiarity with these concepts helps families make informed decisions, communicate goals to a trustee, and work with professionals to build a plan that protects benefits while meeting the beneficiary’s ongoing needs.
The beneficiary is the person who receives the benefit of the trust assets. In special needs planning the beneficiary is typically someone with a disability who relies on public benefits for daily needs. The trust is drafted to direct funds toward supplemental items that improve quality of life without disrupting eligibility for government programs. Provisions often specify permissible distributions, the trustee’s authority, and conditions for successor trustees. Identifying the beneficiary’s unique medical, housing, educational, and social needs informs the trust terms and the selection of appropriate caregivers or trustees to manage distributions.
A trustee is an individual or institution appointed to manage the trust assets and make distributions according to the trust terms. Trustees must understand how to balance the beneficiary’s needs with the rules that govern public benefits, document distributions, and keep records for both family and legal purposes. Families may choose a trusted relative, a friend, or a professional fiduciary. Trustees also coordinate with health care providers and benefits counselors to ensure distributions support the beneficiary’s overall care plan while maintaining eligibility for programs like Medi-Cal and Supplemental Security Income.
A first-party special needs trust is funded with assets belonging to the person with a disability, often created when a beneficiary receives a settlement or inherits assets. These trusts commonly include a payback provision that requires repayment to the state for public benefits received during the beneficiary’s lifetime after the beneficiary dies. They are intended to protect benefits while allowing the beneficiary to benefit from assets for supplemental needs. Proper drafting and court approval are important to ensure the trust meets statutory requirements and preserves public benefits.
A pooled trust is managed by a nonprofit organization that pools funds from many beneficiaries for investment and administrative efficiency while maintaining individual subaccounts for each beneficiary. These trusts are often used when first-party funds must be held and managed but a family prefers the oversight and economies of scale provided by an established organization. Pooled trusts can accept funds with a payback provision and frequently offer professional administration, making them a viable option when managing smaller sums or when a family is seeking an alternative to appointing a private trustee.
When planning for a loved one with disabilities families often weigh a limited document approach against comprehensive planning. A limited approach might include a single trust or a simple will and basic powers of attorney, and it can be appropriate for relatively straightforward situations. A comprehensive plan includes layered documents such as a Revocable Living Trust, Pour-Over Will, Financial Power of Attorney, Advance Health Care Directive, Certification of Trust, and provisions for trust administration, and often provides more durable protection and coordination with public benefits. Choosing between these approaches depends on complexity, assets, and long-term caregiving expectations.
A limited planning approach can be appropriate when anticipated transfers to the beneficiary are small, and the family anticipates short-term needs rather than ongoing financial support. In those cases a simple written trust or structured beneficiary designation paired with basic powers of attorney and an advance directive may provide needed protections without the time and cost of a fully layered estate plan. That approach should still consider how any assets will impact eligibility for Medi-Cal and Supplemental Security Income and include practical instructions for trustees or caregivers.
A limited strategy may work for families where a single trusted individual will manage modest funds and where there are no complex care or long-term housing arrangements to coordinate. If the beneficiary’s needs are stable and the family’s financial situation is uncomplicated, focused planning can resolve immediate concerns. Even in simple scenarios it is important to document intentions clearly, include HIPAA authorization and guardianship nominations if appropriate, and ensure that trustees or caregivers understand their duties and how to preserve public benefits when making distributions.
Comprehensive planning is often necessary when the beneficiary relies on multiple public programs, when long-term care is anticipated, or when assets are substantial enough that missteps could jeopardize benefits eligibility. A full plan ties together a special needs trust with supporting documents such as a Revocable Living Trust, Certification of Trust, Pour-Over Will, and HIPAA Authorization. This coordinated approach clarifies how trust assets will be used, names successor trustees, and provides for future modifications or petitions like a Heggstad or Trust Modification Petition if funding arrangements need to be corrected post-mortem.
A comprehensive strategy helps families design a sustainable plan that addresses immediate care, future living arrangements, and funding streams such as Retirement Plan Trusts or Irrevocable Life Insurance Trusts. This allows the family to build longevity into the plan and to decide in advance how and when distributions should be made. Comprehensive planning reduces the chance of disputes, provides for successor management, and can include mechanisms to modify terms as the beneficiary’s needs change or as laws evolve, thereby protecting long-term financial security.
A comprehensive approach to special needs planning ensures that all aspects of a beneficiary’s care and financial life are considered together. It coordinates trust language with estate documents, beneficiary designations, and powers of attorney so that assets flow into the intended trust at the right times. This coordination helps preserve eligibility for public benefits, supports continuity of care, and reduces the administrative burden on family members. Comprehensive plans also anticipate future needs and include review mechanisms so the plan remains aligned with the beneficiary’s circumstances and available services.
In addition to protecting benefits and coordinating documents, a full planning approach addresses trustee selection, administration protocols, and communication among family members and care providers. It includes practical items such as HIPAA authorizations and guardianship nominations when needed, and can incorporate funding strategies like life insurance trusts or retirement plan direction to ensure that resources are available as intended. Families gain clarity about who will make decisions and how distributions will be handled, reducing uncertainty and helping the beneficiary maintain a stable, supported life.
One of the principal benefits of comprehensive planning is the ability to preserve eligibility for programs like Medi-Cal and Supplemental Security Income while still providing funds for quality-of-life improvements. Properly drafted trust provisions allow distributions for education, therapies, home modifications, transportation, and recreation without counting those assets as income for benefits eligibility. This careful balancing protects the core supports that the beneficiary needs while enabling family funds to enhance daily life in meaningful ways.
Comprehensive special needs trust planning delivers flexibility for changing needs through provisions that guide trustees, name successors, and describe distribution standards. This flexibility helps the trust adapt if the beneficiary’s living situation, health care needs, or program eligibility changes over time. Regular reviews, clear recordkeeping protocols, and coordination with financial institutions and benefits counselors ensure that the trust remains functional and responsive. Families appreciate having a documented plan that offers both direction and the ability to adjust to future circumstances.
Begin planning as soon as possible so family members have time to evaluate funding options, choose an appropriate trustee, and coordinate beneficiary designations and retirement plan directives. Early planning helps avoid rushed decisions after an unexpected event, ensures assets flow into the correct vehicles, and provides time to consult with benefits counselors and healthcare providers. Starting early also allows for discussions about the beneficiary’s long-term needs, potential living arrangements, and the best way to integrate family resources without jeopardizing eligibility for Medi-Cal or Supplemental Security Income.
Selecting a trustee who can balance compassion with sound fiduciary management is important for the long-term stability of a special needs trust. Consider trustees who are organized, communicative, and comfortable coordinating with caregivers and benefits agencies. It is also prudent to name successor trustees and include instructions for periodic reviews and accountings. Some families choose a combination of family and professional administration to provide both personal knowledge and continuity, while others consider pooled trust options for oversight and administrative efficiency.
Families consider a special needs trust to protect a loved one’s access to public benefits while still providing supplemental support that improves daily life and comfort. A trust prevents an inheritance or settlement from disqualifying someone from Medi-Cal or Supplemental Security Income, provides a clear plan for managing funds, and appoints responsible decision-makers for the future. It also reduces uncertainty by documenting how care costs, housing, therapies, and other supports should be paid for and coordinated across caregivers and agencies.
A trust can be structured to address unique family circumstances, including funding from life insurance, retirement plans, or settlements, while providing for successor management if primary caregivers are no longer able to serve. The planning process also creates complementary documents such as Financial Powers of Attorney, Advance Health Care Directives, and guardianship nominations when required. The combined approach provides legal clarity and practical instructions for those who will manage funds and make healthcare or housing decisions on behalf of the beneficiary.
Common circumstances include a beneficiary receiving an inheritance or settlement, parents wanting to protect assets for a child with a disability, the need to preserve Medi-Cal or SSI eligibility, or plans for long-term residential care where additional funds will be required. Other scenarios include families seeking to name successor decision-makers or to combine funds from life insurance or retirement accounts into a structured plan. In these situations a trust provides both legal protection and practical guidelines for managing resources in a way that supports the beneficiary’s needs.
When a beneficiary receives an inheritance or settlement, those funds may disqualify them from means-tested benefits unless held in an appropriate trust. A special needs trust is often used to accept such funds and manage them for supplemental purposes without creating countable resources. The trust should be drafted to satisfy applicable legal requirements, and when necessary a Heggstad or Trust Modification Petition can be pursued to correct issues with trust funding. Proper planning protects benefits while allowing the beneficiary to benefit from the proceeds.
Families who provide or coordinate ongoing care frequently need a plan for paying for additional services and supports not covered by public programs. A special needs trust can fund therapies, respite care, transport, and adaptive equipment, enabling continuity of care and access to non-covered services. The trust also formalizes responsibilities for caregivers and provides a financial mechanism to ensure the beneficiary’s lifestyle and care environment are supported over time, even as family circumstances change.
Protecting eligibility for benefits such as Medi-Cal and Supplemental Security Income is a primary reason to establish a special needs trust. Without proper planning, assets can push a beneficiary above eligibility thresholds and result in loss of essential services. Trust language, distribution restrictions, and careful funding choices are all designed to maintain benefits while permitting funds to be used for supplemental needs. Ongoing administration and periodic reviews help ensure continued compliance with benefit rules as laws and the beneficiary’s situation evolve.
We are here to help Redwood Shores and San Mateo County families navigate special needs trust planning with practical legal services and attentive client support. The Law Offices of Robert P. Bergman provides drafting of Revocable Living Trusts, special needs trusts, Pour-Over Wills, Financial Powers of Attorney, Advance Health Care Directives, Certification of Trust documents, and guardianship nominations. We guide families through funding trusts, coordinating with benefits programs, and preparing petitions such as Heggstad or Trust Modification Petitions if needed. Call 408-528-2827 to discuss your situation and options.
Families choose our office because we offer clear, practical counsel and a focus on durable plans that address both benefits protection and quality-of-life outcomes. Our approach emphasizes careful drafting of trust language and supporting documents so that distributions can enhance the beneficiary’s life without risking public benefits. We assist with trustee selection, funding strategies, and documentation such as Certification of Trust and HIPAA authorizations, always keeping the beneficiary’s needs central to the planning process.
We help families prepare the full suite of estate planning instruments that frequently accompany a special needs trust, including Pour-Over Wills, Financial Powers of Attorney, Advance Health Care Directives, and possible Retirement Plan Trust language. Our office also advises on funding sources such as life insurance, retirement accounts, and general assignments to trust. Practical support for trust administration, recordkeeping, and periodic reviews is part of the service to help the trust remain effective over time.
Serving clients across San Mateo County with a focus on responsive communication, our team provides guidance tailored to family goals and local rules. We assist with petitions such as Heggstad petitions when trust funding issues arise, coordinate with benefits counselors, and prepare guardianship nominations when needed. For a straightforward conversation about options and next steps, call 408-528-2827 to schedule an initial consultation and learn how a special needs trust can fit into your family’s broader estate plan.
Our process begins with a careful intake and consultation to understand the beneficiary’s needs, family resources, and the interaction with public benefits. From there we recommend an appropriate trust structure, draft the trust and related estate documents, assist with funding and beneficiary designations, and prepare any necessary petitions to correct funding issues. We also provide ongoing administration support and periodic reviews to adapt the plan as circumstances or laws change. Clear communication and practical steps guide families at every stage.
The first step involves collecting financial records, medical and benefits information, and documents that show existing assets and titles. We review potential sources of funds such as settlements, insurance proceeds, retirement accounts, and family transfers, and consider how each source should be handled to protect benefits. The initial planning conversation establishes goals for care, preferred trustees, and whether a first-party, third-party, or pooled trust is most appropriate, setting the foundation for drafting precise trust language and supporting estate documents.
Collecting accurate information about income, assets, benefit status, medical needs, and caregiving arrangements is essential. This includes documentation of current Medi-Cal or SSI enrollment, insurance policies, bank statements, property titles, and any settlements or expected inheritances. Medical records and a summary of daily care needs help shape the trust’s distribution standards. Thorough information-gathering reduces the risk of surprises later and supports effective coordination with benefits counselors or social services to preserve eligibility.
During the planning phase we identify the family’s goals for the beneficiary’s care and financial security and discuss potential trustee options. Funding strategies are evaluated, including use of life insurance, general assignments to trust, retirement plan direction, or funding through a Pour-Over Will. We also consider whether a pooled trust might be appropriate. Clear decisions about these items help determine the specific trust structure, distribution language, and related estate documents that will be drafted.
Once the plan is agreed upon we prepare the trust documents with tailored distribution standards and trustee authority, and draft related instruments such as a Revocable Living Trust, Pour-Over Will, Financial Power of Attorney, Advance Health Care Directive, and HIPAA Authorization. For first-party trusts we include required payback language when applicable. The drafting stage ensures that legal language aligns with beneficiary needs and that documents work together to achieve the family’s objectives while protecting public benefits.
Trust drafting focuses on clear instructions for allowable distributions, trustee discretionary powers, successor trustee naming, and recordkeeping requirements. Language is crafted to conform to statutory requirements for first-party trusts and to reflect family preferences for third-party trust provisions. The objective is to create an instrument that a trustee can follow confidently to supplement the beneficiary’s needs without creating countable resources that could affect benefits eligibility. Drafting also contemplates potential future modifications and includes procedures for accountings.
Supporting documents are prepared to ensure smooth funding and administration: Pour-Over Wills can move assets into trusts at death, Certifications of Trust provide proof of trustee authority to banks, and HIPAA authorizations permit access to medical records when needed. We also draft Financial Powers of Attorney and Advance Health Care Directives so decision-makers can act for the beneficiary. Clear funding instructions and beneficiary designations for retirement accounts or life insurance help reduce the need for post-mortem litigation.
After documents are signed the trust must be properly funded and the trustee should begin administration according to the trust terms. This stage includes transferring assets, updating titles or beneficiary designations, and depositing funds into the trust account. Trustees must keep careful records of distributions and coordinate with benefits counselors to preserve eligibility. Periodic reviews are recommended to account for changes in the beneficiary’s needs, family circumstances, or laws affecting benefits and trust treatment.
Funding the trust can involve retitling bank or investment accounts, assigning assets to the trust, coordinating beneficiary designations on retirement plans, or directing life insurance proceeds into an Irrevocable Life Insurance Trust or Retirement Plan Trust. Properly funding the trust avoids gaps that could require petitions to courts, such as a Heggstad petition. The trustee should confirm that account titles and paperwork reflect the trust ownership to ensure assets are managed and distributed according to the trust terms.
Ongoing trust administration includes making distributions consistent with the trust, maintaining clear records of expenditures, and providing accountings if required by the trust or beneficiaries. Periodic reviews help ensure the trust adapts to changes in benefits rules, the beneficiary’s needs, and family circumstances. Trustees may consult benefits counselors, tax advisors, and healthcare providers to make informed decisions. Regular reviews also present opportunities to update related estate documents and to confirm that funding arrangements remain effective.
A special needs trust is a legal arrangement that holds assets for the benefit of a person with disabilities while preserving that person’s eligibility for means-tested public benefits. The trust is structured so that distributions are for supplemental needs—such as therapies, education, transportation, or recreational activities—that do not count as income or resources for government programs. This protects essential benefits like Medi-Cal and Supplemental Security Income while allowing family resources to improve quality of life. Establishing the trust requires careful drafting of distribution standards, selection of a trustee, and coordination with other estate documents. Depending on the source of funds, trusts may include payback provisions or be designed to accept third-party funding. Proper administration and recordkeeping are important to maintain compliance with benefit rules and to document the purpose and nature of distributions.
A first-party special needs trust is funded with the beneficiary’s own assets, such as a settlement or inheritance, and often includes a provision to reimburse the state for benefits paid during the beneficiary’s lifetime. A third-party special needs trust is funded by parents, grandparents, or other family members and typically avoids payback requirements, allowing residual trust assets to pass to other family beneficiaries at the beneficiary’s death. Choosing between these trusts depends on where the funds originate and the family’s long-term goals. First-party trusts help protect benefits for individuals who have their own assets, while third-party trusts are commonly used by families who want to leave funds to support a loved one without reducing future benefits eligibility.
A special needs trust can be funded in several ways: by direct transfers during the lifetime of the settlor; via beneficiary designations or payable-on-death accounts that transfer to the trust; by an estate plan using a Pour-Over Will; or by directing life insurance or retirement plan proceeds into the trust. Each funding approach has legal and tax implications that should be considered when designing the plan. For first-party trusts, which accept the beneficiary’s own assets, care must be taken to include any required payback language. For third-party funding, families typically fund the trust through lifetime gifts or through provisions in a will or trust that direct assets into the special needs trust at death. Coordination with financial institutions and benefit counselors is normally required to complete funding properly.
Selecting a trustee involves balancing personal knowledge of the beneficiary’s needs with reliable financial and administrative skills. Many families choose a trusted relative or friend for their knowledge of the beneficiary, sometimes paired with a professional fiduciary or a nonprofit that administers pooled trusts for durability and administrative support. Trustee duties include managing investments, making distributions consistent with the trust, and maintaining records and accountings. Successor trustees should be named in the trust document to ensure continuity if the primary trustee is no longer able to serve. Clear procedures for successor appointment, limitations on distributions, and guidance on coordination with benefit agencies help successors fulfill their duties and preserve the beneficiary’s support and eligibility for public programs.
A properly drafted special needs trust is designed to avoid affecting eligibility for Medi-Cal and Supplemental Security Income by ensuring trust assets are not treated as countable resources. This requires careful wording about the trustee’s discretion and permitted distributions, along with adherence to applicable statutes and agency rules. The trustee must also document distributions and consult with benefits counselors when necessary to ensure continued compliance. Despite careful drafting, improper funding or distributions can create issues, so administration and periodic review are important. Coordination with social services and benefits counselors helps verify that trust distributions are structured and documented in ways that preserve program eligibility for the beneficiary.
A comprehensive special needs plan usually includes the trust itself plus supporting documents such as a Revocable Living Trust, Pour-Over Will, Financial Power of Attorney, Advance Health Care Directive, HIPAA authorization, and Certification of Trust when needed. Guardianship nominations may also be included to name preferred guardians for minor beneficiaries. These documents work together to ensure assets are directed to the trust as intended and that decision-makers can act when needed. Including these documents reduces the likelihood of confusion, helps ensure assets are properly titled or designated, and provides the practical authorizations necessary for healthcare and financial decision-making. The combined approach creates a cohesive plan that addresses legal, financial, and medical aspects of long-term care.
A pooled trust can be a practical solution for families with smaller amounts to protect because the trust is managed by a nonprofit that pools resources for investment and administrative efficiency. The beneficiary typically has an individual subaccount, and the nonprofit handles investment management, distributions, and reporting. This can reduce administrative burdens on family trustees while still protecting benefits eligibility. Pooled trusts often accept first-party and third-party funds depending on the program, and they can be especially useful when family members prefer not to serve as trustees or when the costs of private fiduciary management would be prohibitive. It is important to evaluate pooled trust rules, fees, and payback provisions to ensure they align with family goals.
A Heggstad petition is a court procedure used when assets intended to fund a trust were not properly transferred before the grantor’s death, and it seeks to have those assets treated as part of the trust. It can be a useful remedy when administrative or timing errors prevented funding during life. The petition asks the court to recognize that the deceased intended the assets to be subject to the trust and to direct administration accordingly. Heggstad petitions require careful factual support and are fact-sensitive, so families should consult with counsel experienced in trust administration and probate matters. Where appropriate, filing such a petition can help complete the funding of a special needs trust and avoid having assets pass outright to the beneficiary in a way that could jeopardize benefits.
A special needs trust should be reviewed periodically and whenever significant life events occur, such as changes in the beneficiary’s health, family circumstances, eligibility for benefits, or changes in applicable law. Regular reviews help confirm that distribution standards remain appropriate, that trusteeship arrangements are still functional, and that funding sources remain correctly titled or designated to the trust. Reviews also allow the family to update complementary documents like powers of attorney and advance directives, to reassess trustee performance, and to implement any necessary modifications. Proactive reviews reduce the risk of inadvertent harm to benefits eligibility and ensure the trust continues to meet the beneficiary’s needs.
To get started with special needs planning in Redwood Shores contact our office for an initial consultation to discuss the beneficiary’s needs, current benefits, and available assets. We will outline options such as third-party trusts, first-party trusts, or pooled trusts, and explain how related documents like Pour-Over Wills, Financial Powers of Attorney, and HIPAA authorizations fit into a comprehensive plan. During the initial engagement we gather financial and medical information, recommend an appropriate trust structure, and provide a clear plan for drafting, funding, and administration. Call 408-528-2827 to schedule a consultation and begin the planning process with guidance tailored to your family’s goals.
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