[WSBAPT] Subpoena for bank to reveal name of beneficiary??

Tue Jan 2 15:10:03 PST 2018

Happy New Year, everyone!

The ultimate rationale behind the PR being able to acquire this info is, of course, related to issues of determining the size of an estate for estate tax or inheritance tax purposes.

Without this key info, PR will not be able to carry through his/her responsibility for dealing with death-related taxes (especially if the estate is “on the cusp” of being large enough to trigger the requirement of a tax filing.)  It is on this basis that we are often able to get info from insurance companies about the size of a policy and (usually) the beneficiary.

Since, I presume, you already have a probate started, it should not be difficult to obtain the court order that Key Bank is insisting on, simply on the basis of the PR’s responsibilities just discussed.

One could stand on principle and insist that PR should be able to get this info without the formality of either a subpoena or a court order, but I would think you are an ex parte appearance away from getting the very court order the bank is insisting on. I would not waste a whole lot of time worrying about how the bank is being unreasonable or even acting in (possibly) an unlawful manner.

In addition, I doubt that the bank’s preference is to hold onto the funds and let them go to the state after x number of years.  It costs banks money to keep inactive accounts going, from what my banker friends have told me.

Good luck.

Regards,

Doug Bratt

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Erin Fairley
Sent: Tuesday, January 02, 2018 2:31 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Subpoena for bank to reveal name of beneficiary??

Here’s my first vexing problem of 2018:

Elderly decedent dies leaving many CDs at multiple banks in Seattle.  Sole surviving sibling and only beneficiary under will (and executor) is named as beneficiary on all CDs except for one held at Key Bank.

We have no idea who the beneficiary could be.  Key Bank will not tell me or executor who the beneficiary is.  There policy is that beneficiary must come in and identify themselves.  My statement:  but, if B does not know, then how can B claim the funds.  Sounds like Key Bank would hold the funds for 5 years and escheat.  Key Bank does not reach out to named beneficiaries even though bank knows that account holder is deceased.

Key Bank says I need court order to reveal beneficiary.  What say you, oh wise ones?

Erin Fairley / Attorney
erin at leschilaw.com<mailto:erin at leschilaw.com> / (206) 353-4625
Leschi Law, PLLC
121 Lakeside Avenue, Suite B Seattle, WA 98122
www.leschilaw.com<http://www.leschilaw.com/>

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From: <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> on behalf of Eden Rubenstein Toner <attorneytoner at earthlink.net<mailto:attorneytoner at earthlink.net>>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Date: Friday, December 29, 2017 at 11:02 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Stepped-up basis for Credit Shelter Trust with General Power of Appt.

Ronda—I have not used POA’s extensively, so others may have better info.  But, if you don’t need to protect from estate tax, then you could use a marital trust instead of a credit shelter.  Call me if you’d like to discuss.
Eden
Eden Rubenstein Toner
Attorney at Law
1600-B SW Dash Point Road, #163
Federal Way, WA 98023
phone 206-953-4485
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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 Chris Moore
Sent: Friday, December 29, 2017 10:32 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Stepped-up basis for Credit Shelter Trust with General Power of Appt.

Thank you for this question.  I am interested in any comments as well.

I am assuming your desire for a step-up in basis is for the Washington Estate Tax credit shelter trust since a CST  is not needed for federal purposes due to portability.  When I have tried to think of a way to get stepped up basis on a WA credit shelter trust I have always come back to the premise that in order to obtain a step-up the assets must pass through the estate of the decedent.  However, for WA estate tax purposes, if the assets pass through the survivor’s estate, then, you have defeated the purpose of the credit shelter trust for WA estate tax purposes.  Perhaps there are ways to accomplish this, but simplicity will certainly be lost.

The only simple way I can see to resolve this problem is for the WA legislature to adopt portability.

Sincerely,

Chris J. Moore
Christopher J. Moore, JD, CPA (Inactive), AEP®, EPLS*
Creason, Moore, Dokken & Geidl, PLLC
Lawyers
1219 Idaho Street, POB 835
Lewiston, Idaho 83501-0835
Phone: 208-743-1516; Fax: 208-746-2231
Website: www.cmd-law.com<http://www.cmd-law.com/>

*Certified as an Estate Planning Law Specialist by the Estate Law Specialist Board, Inc., the only estate planning certification entity approved by both the American Bar Association and the Idaho State Bar Association.
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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<mailto:wsbapt-bounces at lists.wsbarppt.com>] On Behalf Of Ronda Larson
Sent: Thursday, December 28, 2017 4:22 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Stepped-up basis for Credit Shelter Trust with General Power of Appt.

Listmates,

I am seeking feedback from seasoned tax savvy estate planners. Clients are a blended family but do not have a taxable estate. I would like the clients to get a step up in basis on property that will be put in a testamentary credit shelter trust. My plan is to add language giving a formula testamentary general power of appointment with ordering rules and non-adverse party consent. Thus, the surviving spouse can appoint to his or her estate’s creditors (and, I plan to also include power to appoint to the trustor’s then-living descendants, unless the client says otherwise), but the power is limited to assets with the greatest appreciation (and excludes IRA/Retirement plans), and to exercise the power, the spouse must have consent of a non-adverse party.

In cases where there is a potentially taxable estate, I plan to add a capping rule, thus limiting the power to appoint to the fraction or percentage that doesn’t trigger estate taxes.

Is there anything about Washington state law that I am not accounting for in this scheme? Any other thoughts you have regarding this issue? I just want to cover my bases by putting it out here for input.

Thanks.

Ronda Larson
Larson Law, PLLC
1700 Cooper Point Rd SW, Bldg A3
Olympia WA 98502
Ph: 360-259-3076
ronda at larsonlawpllc.com<mailto:ronda at larsonlawpllc.com>
www.larsonlawpllc.com<http://www.larsonlawpllc.com/>

NOTICES: This message, including attachments, is confidential and may contain information protected by the attorney-client privilege or work product doctrine. If you are not the addressee, any disclosure, copying, distribution, or use of the contents of this message are prohibited. If you have received this email in error, please destroy it and notify me immediately. Any tax advice contained in this message is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the internal revenue code or (2) promoting, marketing, or recommending to others any tax-related matter(s) addressed here.

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