[WSBAPT] Qualified Disclaimer or TEDRA for QRP?

[David Faber]

Thanks John. There are no secondary or tertiary beneficiaries, so the
assets should pass directly over to the estate.

I've never had much trouble getting an account administrator comply with a
disclaimer, so unless this particular situation turns out different, I
would think that the disclaimer (and not the TEDRA) approach would be
easiest. I do agree with you that the TEDRA would be a tougher hill to
climb.

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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On Thu, Jan 25, 2018 at 3:09 PM, John Creahan <john at cairn-law.com> wrote:

> Hi David,
>
> I have two thoughts.
>
> First, if you go the disclaimer route, confirm that the disclaimed assets
> will go to the estate rather than to grandchildren or other beneficiaries.
> That information would potentially be on the beneficiary designation or the
> account’s default provisions.
>
> Second, is there any way to keep the current IRA beneficiaries and adjust
> the distributions to them and others? Getting the IRA administrator to
> comply with a TEDRA or disclaimer could be time consuming and cost more
> than its worth.
>
> Hope this helps,
>
> John
>
>
>
> John Creahan
>
> www.cairn-law.com
>
> *Now located in the heart of Fremont *3417 Evanston Ave. N, Suite 312
> Seattle, WA 98103
> 206-578-5877 <(206)%20578-5877>
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.
> wsbarppt.com] *On Behalf Of *David Faber
> *Sent:* Thursday, January 25, 2018 1:55 PM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] Qualified Disclaimer or TEDRA for QRP?
>
>
>
> I am working with the PR on an estate in which Decedent had named two of
> his four children as beneficiaries on two separate QRP accounts (one a 401k
> and the other an IRA). Both of the children agree that Decedent did not
> actually intend that they should be the only beneficiaries, having been
> told by Decedent that he wanted them to divide the money between the
> siblings. The children, and the heirs of Decedent's estate at large, have
> been made aware of the income tax implications of having the QRPs pass to
> the estate and out to the heirs, (which really should not be all that much
> because I believe the total amount of assets is roughly $50k and there are
> seven total beneficiaries) and everyone appears to be on board with this
> plan.
>
>
>
> My problem is determining what is the correct course of action: a
> Qualified Disclaimer or a TEDRA Agreement (or both)? The former is a bit
> simpler to execute, and I was thinking of writing it up in such a way that
> the disclaiming child expressly disclaims their interest in the QRPs but
> not in the proceeds of the QRPs that come through the estate, but I have
> never drawn up a Disclaimer that used that type of limiting language and
> wanted to gauge the temperature on this list.
>
>
> The alternative, of course, is a TEDRA Agreement, with either just the two
> beneficiary children and PR varying the terms of Decedent's beneficiary
> designation, or all of the heirs signing because of the effect of the
> Disclaimer on the income tax obligations of each heir.
>
>
>
> Anyone have thoughts on the best practice here? I'm trying to make this as
> simple as possible for my client and the estate because it isn't an exactly
> wealthy family, but I do, of course, want to make sure that I'm crossing my
> "t"s and dotting my "i"s.
>
>
>
> Thank you.
>
>
>
> Best,
>
> David J. Faber
>
> Faber Feinson PLLC
>
> 210 Polk Street, Suite 1
>
> Port Townsend, WA 98368
> (360) 379-4110
>
>
>
> *** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL.
> This communication may contain privileged or other confidential
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