[WSBAPT] Client moved out of state to an assisted living facility without contacting me

[John J. Sullivan]

Anthony:

My standard practice would have been to place the specific devise in the RLT and keep the pour over Will simple.  Does he not have a DPOA specifically authorizing the AIF to finish funding the RLT?

It sounds like his son will inherit the house, due to the way the Will is written. There’s no reason the son can’t lend secured by the house inside the RLT. 

I would think long and hard about having him gift the WA house to the son. I can’t opine on capacity. The upside is if his WA estate is WA taxable the gift removes the house from his gross estate. But you’ll have to file a Form 709 and use up part of his federal exemption, so if his estate is federal taxable there’s not much advantage. The main downside is the son will inherit the client’s basis - you miss the step-up at his death. 

Unless you’re licensed in CO, I would refer the client to local counsel for any changes to anything other than the RLT. 

Regards, 
John J. Sullivan

Sent from my iPad

> On Aug 29, 2018, at 2:53 PM, Anthony Vivenzio <vivenziolaw at rockisland.com> wrote:
> 
> Listmates,
> A client of ours was residing in our local assisted living facility.  We had drafted a revocable living trust and a pourover will, which he executed.  He owned real property in Colorado in addition to Washington.  To avoid the necessity of an ancillary probate in CO, we placed that property into the trust.  As it seemed he had limited time to live, and his mental facilities passed in and out of lucidity, his local residence was not placed in the trust, but is the subject of a specific bequest in his will.  We had not yet placed it in the trust as the client and his son were considering some kind of financial arrangement like a reverse mortgage that would be funded by his son in order to help the client with his finances.  About a week ago, his family brought him to a facility in CO, which he had been considering.  I would appreciate your thoughts in terms of what I should consider doing at the point as he will be living in CO for the rest of his life.  He possesses all his original documents.  He wants his son to inherit his home in WA.  Is it an option that during a period of lucidity in CO, he could execute a deed transferring his WA property into the trust to avoid an ancillary probate in WA?  Would he be considered a resident of CO now for purposes initiating a probate and trust administration process?  Your thoughts would be appreciated as I have never had a case like this before.  Thank you.
>  
>  
> Anthony D. Vivenzio,
> Attorney and Counselor at Law
> PO Box 208
> 540 Guard Street, Ste. 260
> Friday Harbor, WA  98250
> (360) 378-6860
> vivenziolaw at rockisland.com
>  
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