[WSBAPT] testamentary trust to hold real property

[John Creahan]

Hi Sharon,
I don't know if you have received any responses to this. I don't think I have good language, but a few things to consider:

  *   Will the DP be responsible for paying expenses during the trust term? If so, can he/she afford to do so and what happens if DP fails to pay? If not, will the trust have sufficient assets to pay these costs.
  *   Who will be responsible for major maintenance and/or improvements? DP probably won't want to bear the cost of replacing the roof, repairing a cracked foundation, clearing out a sewer line, etc. when doing so has limited future benefit.
  *   What if the DP wants to - or has to - move? Will the trust sell the house and buy a replacement? What about casualty loss, such as fire? Who gets the money?
  *   Who is the trustee? Will the trustee have inspection rights to ensure that the house is being maintained? How will the trustee make sure that taxes, insurance, etc. are paid?
  *   Who is the charitable beneficiary? Will they be involved during the drafting stage? Will they have any right to ensure that the house is being maintained? A large charity - such as UW, Children's Hospital, Salvation Army, etc. - will have some thoughts, and might even be a good choice as trustee.
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/>
[cid:image001.png at 01CE636C.3EB992D0]

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Sharon Rutberg
Sent: Friday, October 21, 2016 1:11 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] testamentary trust to hold real property

Hello, Listmates -

I am including in a client's will a testamentary trust intended to hold a piece of residential real property in the event of the testator's death. The property would be held in trust for the benefit of her domestic partner during his lifetime, and the remainder beneficiary would be a charity. Client and partner are in their 70s. There are no estate tax issues - estate is well under $2 million.

Does anyone have some language for a trust of this type? Are there any pitfalls I should be aware of?

Thanks very much.
Sharon

Law Office of Sharon C. Rutberg, PS
1734 NW Market St.
Seattle, WA 98107
Website: www.sharonrutberglaw.com<http://www.sharonrutberglaw.com/>
206-409-2604
email at sharonrutberglaw.com<mailto:email at sharonrutberglaw.com>
Washington State Bar #47055
D.C. Bar #420576

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