[WSBAPT] My first TEDRA??

[Sam Furgason]

Amanda,

 

I’d like to make an observation: Most irrevocable decedents’ trusts funded as a result of the death of one spouse of a joint revocable living trust have more to offer than just tax savings. For example, creditor protection, SNT language, identity theft or protection of the first spouse’s assets from unscrupulous people who would take advantage of the elderly. While the surviving spouse may think she may never lose her mental faculties, that does happen to anyone who lives long enough. I look on the cost of a simple 1041 not as a nuisance, but as a (deductible) insurance premium. And she will still have the same income tax return and tax obligation even if one or both of the trusts are terminated. 

S  

 

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of amanda_wilson at olypenlawoffices.com
Sent: Tuesday, June 09, 2015 4:09 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] My first TEDRA??

 

 

Client asked me to review A/B Trust. It has been meticulously administered since her husband's death a few years ago and the accountings are all in order.

 

However, the combined estate is around $1 million.

 

My client and her late spouse had two children together, who are the heirs under the decedent's trust and the survivor's trust. My client has no intention of changing the beneficiaries.

 

My client is tired of managing two trusts and paying the CPA at tax time each year, I do not think an estate tax would be owed on the combined estate. The two adult children have good relationships with their mother and would be willing to to sign things that benefit the mom....

 

Can my client and the kids all sign affidavits agreeing to the termination of the decedent's trust? Is a TEDRA action necessary? What would we need to do to appease (or not anger) the IRS since the decedents Trust is "registered" and has an EIN already?

 

Amanda Wilson

 

Amanda M. Wilson, esq.

 

Olympic Peninsula Law Offices, LLC

P.O. Box 115

Port Townsend, WA 98368

 

(360)437-4172 office

(206)331-7851 cell phone

 

"Your words are the greatest power you have. The words you choose and their use establish the life you experience."
-Sonia Croquette 

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