[WSBAPT] Authority for Irrevocable Credit Trust

[Jen Doehne]

We are trying to compel the funding of the trust and argue that it was always contemplated by decedent to be irrevocable.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Rod Harmon
Sent: Thursday, June 07, 2018 9:41 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Authority for Irrevocable Credit Trust

Are you trying to establish that no trust was created?
Or are you trying to compel the funding of the trust?

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
         P.O. Box 1066
      Bothell, WA   98041
     Tel:   (425) 402-7800
     Fax:  (425) 458-9096
    www.rodharmon.com<http://www.rodharmon.com>
   rodharmon at msn.com<mailto:rodharmon at msn.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 Jen Doehne
Sent: Thursday, June 7, 2018 9:14 AM
To: 'WSBAPT at lists.wsbarppt.com' <WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>>
Subject: [WSBAPT] Authority for Irrevocable Credit Trust

Hi Everyone-
I am working on a very contentious case where the main issue is a Credit Trust whereby the surviving spouse grantor failed to fund it and attempted to make several amendments to it (such as changing beneficiaries). I have completed hours of research and have found many cases whereby the court states in dicta that the Credit Trust is irrevocable and must be funded but I have found no statutory backing.

The Credit Trust itself says that "Each Grantor while living reserves the right as to the assets transferred to, attributable to, or derived from, property contributed by such Grantor. . ." and further that "Trustee shall allocate to the Credit Trust an amount of property from the decedent's one half interest in the community property of the Trust Estate (and if insufficient, from the Decedent's separate property of the Trust Estate) equal to the minimum otherwise unused pecuniary amount necessary to exhaust the maximum unified credit . . ."

So far the wording of the Trust itself is my best argument that the Credit Trust is irrevocable and must be funded at the first spouse's death. Does anyone know of any statutory or actual case law that may shed light on this?

Thank you so much! Best wishes,

Jen
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20180607/d1e211fa/attachment.html>