[WSBAPT] Durapble Power of Attorney and authority to gift

Wed Dec 2 10:42:52 PST 2015

Thank you John and Katharine!

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Katharine P. Bauer
Sent: Tuesday, December 01, 2015 5:14 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Durapble Power of Attorney and authority to gift

I always, in this situation, include only the power to make gives which comply with the intent of the principal's Will and make sure to include the reference John makes to the RCW...

On Dec 1, 2015 5:10 PM, "John Creahan" <john at cairn-law.com> wrote:

Lovie,

Your client can give her attorney-in-fact the power to make gifts, although she must specifically authorize it in her durable power of attorney (see RCW 11.94.050). This power could cause potentially nasty conflicts between the client’s children – and create real nastiness if the son abuses the power at all.

I use the following language:

Gifts. My agent may use my property to make gifts, on my behalf, to my family or charity, outright or in trust, if he or she reasonably believes I would have made the gift under the circumstances, considering my prior gifting history and my overall planning goals, including tax reduction. My agent may make gifts to himself or herself under the same standard, as limited by RCW 11.95.100 through 11.95.150. 

Hope this helps,

John

John Creahan

206-621-5848
www.cairn-law.com <http://www.cairn-law.com/> 

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Lovie Bernardi
Sent: Tuesday, December 1, 2015 4:45 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Durapble Power of Attorney and authority to gift

Estate planning client is single woman in her mid-sixties with two adult children in their mid-thirties. Will leaves the estate equally between the kids; there are no grandchildren. Her estate currently is over the Washington estate tax threshold by about $700,000. Her wealth is mainly tied up in her home, worth about $2 million.  She has health issues that will likely lead to needing long term care and plans to use her assets to fund this. Because of this, she does not wish to do any gifting to the children now to reduce her estate below the threshold, but may wish to do so in the future. Has anyone included the power to gift assets in a DPA for the purpose of reducing a taxable estate? I’m imagining a scenario where she is at the end of her life, incapacitated, but has not spent down her assets. It is feasible (or advisable) to grant the attorney-in-fact (the son) the power to make equal gifts to himself and his sister, enough to reduce the estate below the Washington estate tax threshold? Thoughts or other ideas to avoid the taxman down the road?

Lovie Bernardi

Attorney at Law

Seligmann & Flaherty, PLLC

216 First AVE S, #450

Seattle, WA  98104

(206) 682-2616 <tel:%28206%29%20682-2616> 

lovie at sbfirm.com <mailto:joni at sbfirm.com> 

http://sbfirm.com <http://sbfirm.com/> 

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