[WSBAPT] TEDRA and beneficial interest

[John Creahan]

Marcus,
Thanks for your response. That is an interesting take on it.
I am curious about your comment that notice would be required – which I suppose gets to the heart of my question.
TEDRA requires notice to “parties,” defined to include heirs who have “an interest in the subject of the particular proceeding,” which apparently means a “beneficial interest.”
Under the facts I described, do you think Brother has an interest in the proceeding such that he would need to receive notice?
Thanks,
John

John Creahan
www.cairn-law.com<http://www.cairn-law.com/>
Now located in the heart of Fremont
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103
206-578-5877


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Marcus Fry
Sent: Thursday, August 31, 2017 3:03 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] TEDRA and beneficial interest

John:
Isn’t your question how effective you want your TEDRA Agreement to be?  I think sister and your client can enter into a TEDRA Agreement (this is different from petitioning the court under TEDRA, which notice would be required to brother)  to resolve an issue with regard to her interest in the Estate.  It will not be binding on the brother, but it appears that doesn’t matter in this case.  If somehow there is a chance that an interest would vest in him, such as her passing, etc., and you don’t want your client sued for making a wrongful distribution, then he needs to be included in the agreement IMO.  You could include in your TEDRA that she irrevocably agrees not to disclaim to address the disclaimer possibility.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John Creahan
Sent: Thursday, August 31, 2017 2:40 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] TEDRA and beneficial interest

Hi,
Does an alternate beneficiary under a will have a “beneficial interest” in the estate when the primary beneficiary was still alive at the testator’s death?
My client, the personal representative, and the primary beneficiary under the will (“Sister”) have agreed to resolve a particular issue, and I am drafting a TEDRA agreement to memorialize that agreement.
“Brother,” an alternate beneficiary, is estranged from the family, and I would prefer to not have to chase him down. He is not entitled to anything under the will unless Sister disclaims – which is not going to happen.
TEDRA’s definition of “party” includes “all persons beneficially interested in the estate.”
My question: does Brother’s vanishingly-remote possibility of receiving a disclaimer give him a beneficial interest in the estate?
I appreciate your thoughts on this.
John

John Creahan
www.cairn-law.com<http://www.cairn-law.com/>
Now located in the heart of Fremont
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103
206-578-5877


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