[WSBAPT] objective is to avoid a probate

Sun May 29 11:09:51 PDT 2016

Good.  Thanks.  that's what I thought.

Jim

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 9:22 AM, Paul H. Grant <paulnnepa at gmail.com> wrote:

> 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
>>
>>
>>
>> [image: header-black.gif]
>>
>> 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
>> <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 <kristina at rdattys.comcastbiz.net>*
>>
>>
>>
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