[WSBAPT] Charitable Remainder Trust v. Living Trust

[John Creahan]

Hi Maureen,
Charitable gift planning is a significant part of my practice, and I would be happy to talk with you about your client's planning needs.
Based on the information you provided, I doubt that a testamentary charitable remainder trust would provide your client or her husband substantial income or estate tax benefits.
A testamentary marital trust or, perhaps, a testamentary charitable gift of the real estate subject to a retained life estate (for the husband's benefit) would likely accomplish her goals with less hassle or chance that something could go wrong. She could even consider gifting the real estate now while retaining a life estate for both of them.
Hope this helps,
John

John Creahan
john at cairn-law.com<mailto:john at cairn-law.com>
1325 4th Ave., Suite 940
Seattle, WA 98101
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Maureen Ray
Sent: Monday, December 26, 2016 11:40 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Charitable Remainder Trust v. Living Trust

Hello colleagues!  This is my first time coming to the font, and I appreciate any direction you might give.  I have a client who wants to make a testamentary gift to charity of her half of community real estate and cash and securities.  The size of her estate is just over the WA estate tax exemption equivalent (and roughly half of the federal equivalent).  As regards the real estate, there is a question whether her husband would sign over his half-ownership.  Should I first work on getting a Marital Agreement signed so that her half ownership of the real estate is established?  After that, would a charitable remainder trust be better than a grantor trust because of the tax benefits inherent in the CRT?  Any suggestions for a good bank to act as trustee, and possible executor, would also be appreciated.

Thanks so much,

Maureen E. Ray
P.O. Box 1711
Poulsbo, WA 98370
360-930-0637
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