[WSBAPT] parties "interested" in termination of disclaimer trust

Fri Dec 7 16:33:17 PST 2018

Hi Tom:

Well, I like it, that’s for sure.  Logical.  We’re saying, because at this point the children are the residuary beneficiaries, they will take when the income beneficiary dies (first event), thus standing before the persons who will take on their death (second event) and allowing them to represent anyone who comes behind them – i.e., their children and more remote descendants.

Thanks!

Kate

Kate Szurek, J.D., LL.M.
kate at skagitlaw.com<mailto:kate at skagitlaw.com>

[SkagitLaw_Signature (2)]
Skagit Law Group, PLLC
P.O. Box 336 / 227 Freeway Drive, Suite B
Mount Vernon, WA  98273
360.336.1000
360.336.6690 (fax)
http://www.skagitlaw.com<http://www.skagitlaw.com/>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Thomas M. Culbertson
Sent: Friday, December 07, 2018 8:40 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] parties "interested" in termination of disclaimer trust

Kate and John, isn’t this a classic case of virtual representation under 11.96A.120(8)?  The children are takers upon the happening of a future event (death of Mom), and the grandchildren are takers upon the happening of a possible second future event (death of child before death of Mom), so the children virtually represent their children.  I don’t see any need to have the grandchildren sign off. Or am I missing something?

________________________________________
THOMAS M. CULBERTSON  I  Lukins & Annis, PS
717 W. Sprague Ave, Suite 1600, Spokane, WA 99201
(509) 455-9555  I  fax (509) 363-2500  I  tculbertson at lukins.com<mailto:tculbertson at lukins.com>

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 J. Sullivan
Sent: Wednesday, December 05, 2018 8:30 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] parties "interested" in termination of disclaimer trust

Kate:

I’ve taken the position in those cases that the adult grandchildren are “interested parties.” I’ve not had a problem getting sign offs.

I have taken the position beneficiaries whose interested cannot be affected are no. For example, charities who are beneficiaries of specific bequests.

John J. Sullivan
Sent from my iPhone

On Dec 5, 2018, at 4:33 PM, Kate Szurek <kate at skagitlaw.com<mailto:kate at skagitlaw.com>> wrote:
Listmates:

When dad died, mom exercised her right under the Will to disclaim a portion on dad’s estate into a Disclaimer Trust for her benefit over her lifetime.  This was done at the time solely because her estate would have been subject to estate taxes on her death (based on the then estate tax exemption) if she took distribution of his entire estate, as she was otherwise entitled to do under the Will.

After the passage of time and the increase in the state’s estate tax exemption, the combined value of her estate and the current value of the Disclaimer Trust are well below the individual estate tax threshold.  She is also entering the later stages of her life and wants to make gifts to her children and grandchildren.

My question is who are the “interested parties,” under TEDRA, in the trust?

The trust states that on the surviving spouse’s death, the trust is to be distributed in equal shares among her (and decedent’s) children.  If any child is deceased, the child’s share is to be distributed to the child’s surviving spouse  If the child’s surviving spouse is also deceased, then the deceased child’s share is to be distributed to the deceased child’s surviving descendants (i.e., the decedent’s grandchildren, all of whom are adults, but for two minor grandchildren).

Since it is easy to do so, I am going to have the surviving spouse (my client) sign individually and as trustee; the children will sign, as will their spouses.  The parents can sign as virtual representatives of their minor and unborn children.  But what about the adult grandchildren?

Any opinions?  Any true answers??

Thanks in advance!

Kate

Kate Szurek, J.D., LL.M.
kate at skagitlaw.com<mailto:kate at skagitlaw.com>

<image001.jpg>
Skagit Law Group, PLLC
P.O. Box 336 / 227 Freeway Drive, Suite B
Mount Vernon, WA  98273
360.336.1000
360.336.6690 (fax)
http://www.skagitlaw.com<http://www.skagitlaw.com/>

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