[WSBAPT] division of RLT a little late...

[Katharine P. Bauer]

I also did this after the fact for a multi million dollar estate holding
down town real estate in San Diego.  It was all CP and the IRS let us
divide all assets into 2 equal shares with creation/funding of a CST that
acted like a martial trust with all income having been paid to spouse...
Simple tax returns for the missing years.  I think it was under the minimum
federal credit for each half when funded so we were able to save on taxes
and penalties.  Sam Armour at Armour Vickerman did all the returns.  Then
we insured the stink out of the surviving spouse ($4million) to pay taxes
at her death ... Expensive but with it.  Fortunately she had moved to WA
before she died in CA and we had no tax when she died.
On Oct 26, 2015 2:04 PM, "Melinda Grout" <mkgroutlaw at gmail.com> wrote:

> Good morning all.
>
> Client has 1996 RLT that requires division into a Survivors Trust and
> Credit Shelter Trust.  The deceased spouse grantor/trustee died in 1999,
> but the survivor (client) never  divided into two trusts.  Also, another
> attorney did an Addendum in 2005, addressing only the Sections regarding
> the Survivor’s Trust, without addressing the necessary division either
> way.  There was/is pretty valuable real estate involved, which was much
> less valuable up until this past couple of years when some was subdivided
> and sold to a developer, and the remainder is going through the same
> process now.  Client now wants to amend, again, the terms of distribution
> of the RLT.  Am I correct that the division of trusts needs to be addressed
> before simply creating a Second Addendum?
>
> Is this essentially and initially a referral to a CPA to address past due
> and current returns, computing the division including factors re basis,
> etc, other tax implications, and help setting up a separate account?  It
> seems with the real estate doing what it has done, and is about to
> do, there is complexity to this that may be far above my pay grade.   Is
> this a complex matter best referred to someone who regularly handles these,
> and if so, who is doing this type of work?   I would truly appreciate some
> guidance.
>
> Melinda
>
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