[WSBAPT] Trustee Powers To Loan Trust Principal to Themselves as Beneficiary

[Boaz Weintraub]

Dear Listmates:

During marriage, a spouse acting as sole trustee of her father's
testamentary (credit shelter) trust loaned herself and husband trust
substantial monies at a fair market interest rate for a 4 year term. The
spouse/trustee is also a beneficiary of the trust. The only other
beneficiary (the mother) is incapacitated, and the spouse has power of
attorney over her financial matters.

RCW 11.98.070 describes the powers of a trustee. Subsection (13) states in
part ...."*except that no trustee who is a beneficiary of a trust may
participate in decisions regarding loans to such beneficiary from the trust
and then only to the extent of the loan..*."

The issue is whether the spouse was prevented from loaning herself and her
husband the trust monies under this or any other applicable statute or Wa.
law. If not, what would be the remedy/legal consequence?

Thank you in advance for any input.

-- 
*Boaz "Bo" Weintraub*  | JD, LL.M.

Weintraub Law Office, PLLC

T *(425) 374-4045 <%28425%29%20374-4045>* |  F *(425) 274-7019
<%28425%29%20274-7019>*

www.weintraub-law.com  |  bw at weintraub-law.com

Bellevue Office: 14205 S.E. 36th Street, Suite 100, Bellevue, WA 98006

Bothell Office: 19125  Northcreek Parkway, Suite 120, Bothell,
Washington  98011

IMPORTANT/CONFIDENTIAL: This e-mail and any attachments may contain
confidential information protected by the attorney-client privilege or
other privileges, and intended for use only by the intended recipient(s).
If you have received this e-mail in error, please do not read, reproduce or
distribute the contents, but rather, please immediately notify the sender,
delete the e-mail and destroy all copies of the e-mail and any attachments.
Unless otherwise expressly stated herein, any advice contained in this
e-mail (including any attachments) is not intended or written to be used,
and cannot be used, for purposes of avoiding tax penalties that may be
imposed on any taxpayer.
Thank you.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170118/3a3b8c85/attachment.html>