[WSBAPT] TEDRA to terminate Supplemental Needs Trust

[Heather deVrieze]

I don’t see any problem using TEDRA to terminate this Trust. I see the advisability of having the adult son of the beneficiary sign off, but you should be able to use the doctrine of virtual representation as codified at 11.96a.120 to have the living siblings sign off for themselves and their heirs/descendants.

Heather


Heather S. de Vrieze
Attorney-at-Law
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Ralph Maimon
Sent: Monday, April 23, 2018 3:18 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] TEDRA to terminate Supplemental Needs Trust

Please ignore the prior “subject” on this email as I simply used someone’s to forward to all.

Ralph Maimon
LAW OFFICE OF RALPH MAIMON, P.S.
2811 E. Madison Street, Suite 202
Seattle, WA 98112
(206) 323-0911 Office
(206) 462 1505  Fax
rmaimon at maimonlaw.com<mailto:rmaimon at maimonlaw.com>
www.maimonlaw.com<http://www.maimonlaw.com>

From: Ralph Maimon
Sent: Monday, April 23, 2018 3:05 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject:

Listmates:

Parents (now deceased) left a special (non-testamentary) Supplemental Needs Trust for her lifetime for one of four children, who, everyone agrees, has outgrown any concern over her handling money.  The trustees have 100% discretion to distribute income and principal to her.  She has three living siblings and no deceased siblings.  Two are her trustees. She has a limited power of appointment upon her death but if she doesn’t exercise it, then it goes to her sole child, an adult son (but actually in a support trust again i.e., until he is 45), should she die before the trust funds are exhausted.  If he predeceases her, it goes to any further descendants she may have (none now) or to her siblings or their children, by right of representation. If no surviving siblings or their children, to the grantor’s descendants.  The siblings and the son are in agreement to terminate the trust.

If it is absolutely necessary, the children of the siblings would be willing to sign as well, except for a great nephew who just turned 1.  So remote, but I suppose a possible heir.

What if any pitfalls do you foresee if we do a TEDRA signed by all to terminate the trust, legally and tax wise? Seems too simple to be feasible.

Thanks for your thoughts on this.

Ralph Maimon
LAW OFFICE OF RALPH MAIMON, P.S.
2811 E. Madison Street, Suite 202
Seattle, WA 98112
(206) 323-0911 Office
(206) 462 1505  Fax
rmaimon at maimonlaw.com<mailto:rmaimon at maimonlaw.com>
www.maimonlaw.com<http://www.maimonlaw.com>

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