[WSBAPT] objective is to avoid a probate
Paul H. Grant
paulnnepa at gmail.com
Sun May 29 09:22:25 PDT 2016
Yes Jim, a revocable trust is a grantor trust under the full control of the trustmaker. Therefore the property of the decedent is still owned by the decedent at death and a step-up will occur. If it is moved to an irrevocable trust as a gift (used for Medicaid and estate tax planning) then the basis would move with the property and no step-up.
I hope that helps.
Sent from my iPhone ~ Paul H. Grant
> On May 29, 2016, at 11:58 AM, Jim Doran <jim at doranlegal.com> wrote:
>
> I have been following this thread and it has led me to a question that I hope someone will respond to.
>
> A critical aspect of this is to get the stepped up basis to the significant other. I understand that the devisee will get the stepped up basis if the owner dies while still owning the real estate and bequeaths it to the new owner by some devise. However, my question is, if the real property is put into the RLT and then the trustor dies will the heir get the stepped up basis even though the property was technically put into the trust?
>
> My understanding was that the stepped up basis can occur with the use of a Revocable Living Trust. Is that right?
>
> Jim Doran
>
>
> James R. Doran
> Attorney at Law
> 100 E. Pine Street - Suite 205
> Bellingham, WA 98225
> (360)393-9506
> jim at doranlegal.com
> www.doranlegal.com
>
>> On Sun, May 29, 2016 at 4:47 AM, Paul H. Grant <paulnnepa at gmail.com> wrote:
>> If you use the RLT route, which I would favor, then be sure that the contract is also in the name of the trust so that the new trustee, presumably the life partner, would have control of not just the house but the contract as well. Then, you can think through who is the next beneficiary of the contract and the house proceeds if they keep it in the trust, plus you get the step-up
>>
>> Sent from my iPhone ~ Paul H. Grant
>>
>>> On May 28, 2016, at 4:05 PM, Sara D. Longley <sara at longley-law.pro> wrote:
>>>
>>> The only way the property gets a step-up in value is if your client dies still owning it. So, TOD deed is probably the way to go, and then the partner can sell to the friend/buyer. POD designations on accounts should handle any other assets.
>>>
>>>
>>>
>>> Good luck, and my sympathies to your client and his partner.
>>>
>>> -Sara
>>>
>>>
>>>
>>>
>>>
>>> Sara D. Longley, J.D., LL.M.
>>>
>>> Attorney at Law
>>>
>>>
>>>
>>> 1734 NW Market Street
>>>
>>> Seattle, WA 98107
>>>
>>> (206) 434-5644
>>>
>>> Sara at longley-law.pro
>>>
>>> www.longley-law.pro
>>>
>>>
>>>
>>>
>>>
>>> From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Kristina Driessen
>>> Sent: Saturday, May 28, 2016 11:57 AM
>>> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
>>> Subject: Re: [WSBAPT] objective is to avoid a probate
>>>
>>>
>>>
>>> The buyer is a friend who would wait. He is only buying it to help the seller feel comfortable about leaving a stream of income to his significant other. Same issue?
>>>
>>>
>>>
>>> Kristina
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> Sent from my T-Mobile 4G LTE Device
>>>
>>>
>>>
>>> -------- Original message --------
>>> From: Justin Morgan <justin at tuohyminor.com>
>>> Date: 5/28/2016 11:19 AM (GMT-08:00)
>>> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
>>> Subject: Re: [WSBAPT] objective is to avoid a probate
>>>
>>> Interesting.
>>>
>>>
>>>
>>> You could do a trust with your client as the first beneficiary, and the life partner as the remainder beneficiary. Then your client retains control during life.
>>>
>>>
>>>
>>> If you do a TODD it may mess up your real estate contract since the buyer is going towing everyone bound to the deal
>>>
>>> Sent from my iPhone
>>>
>>>
>>> On May 28, 2016, at 11:01 AM, Kristina Driessen <Kristina at rdattys.comcastbiz.net> wrote:
>>>
>>>
>>>
>>> I have a situation that I am trying to wrap my head around. It could be because it is a Saturday on a three day weekend that I am struggling and the answer is easy. But here goes….
>>>
>>>
>>>
>>> I have a gentlemen who is terminally ill. I have drafted his estate plan which includes the only asset to be probated which is real property. All assets are to be sold with the proceeds going to his life partner. He has no children or other heirs.
>>>
>>> Client now has a buyer who wishes to put a large sum down with monthly payments [$40,000.00 down]. Realizing that the client will not be around to collect the sums, he wishes to have the payments go to his life partner. [who is the beneficiary in the will]. He would like to avoid a probate and thus headache for his beneficiary. The sum remaining on the contract even with the down payment is approximately $160,000.00. This has not closed as of yet.
>>>
>>>
>>>
>>> The end goal is to avoid a probate. At this point, could I assign the contract to his life partner before his death? I could quit claim it to his beneficiary, but am hesitant to do so because of her then having his basis in the property. I have also considered doing a transfer on death deed to his beneficiary and then she can enter into the contract with the buyer.
>>>
>>>
>>>
>>> Any other suggestions or ideas?
>>>
>>>
>>>
>>>
>>>
>>> Kristina A. Driessen
>>>
>>> Ryan & Driessen
>>>
>>> Attorneys at Law
>>>
>>> 16 A Street SE
>>>
>>> Auburn, WA. 98002
>>>
>>> (253) 939-0811
>>>
>>> (253) 939-0471 fax
>>>
>>> kristina at rdattys.comcastbiz.net
>>>
>>>
>>>
>>> CONFIDENTIALITY NOTICE
>>>
>>> This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney/client privilege, work product doctrine or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at 253.939.0811 that you have received the message in error, and then delete it. Thank you.
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> _______________________________________________
>>> WSBAPT mailing list
>>> WSBAPT at lists.wsbarppt.com
>>> http://mailman.fsr.com/mailman/listinfo/wsbapt
>>>
>>> _______________________________________________
>>> WSBAPT mailing list
>>> WSBAPT at lists.wsbarppt.com
>>> http://mailman.fsr.com/mailman/listinfo/wsbapt
>>
>> _______________________________________________
>> WSBAPT mailing list
>> WSBAPT at lists.wsbarppt.com
>> http://mailman.fsr.com/mailman/listinfo/wsbapt
>
> _______________________________________________
> WSBAPT mailing list
> WSBAPT at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbapt
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20160529/e1264b17/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 830 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20160529/e1264b17/image001.jpg>
More information about the WSBAPT
mailing list