[WSBAPT] Inheritance as Separate Property in Rocky Marriage

[Felicia Value]

In cases like this,  I've sometimes created a revocable trust for 
inheriting spouse,  funded solely with the newly-inherited separate 
property.   Creates a nice boundary around the SP,  and aggressive 
spouse must take affirmative steps to challenge RLT after death,  
whereas he has a ready-made forum if the assets are probated.   
Explicitly state intent to pass trust assets to children only;  
explicitly state intent to not benefit spouse; name stout trustees and 
successor trustees;  perhaps give husband the house via a Will which 
includes an in terrorum clause that's triggered by a challenge to the 
trust;  and include language in the RLT like:

1.3TRUST PROPERTY.

1.3(a)_Separate Property Only_.I have transferred and delivered to the 
trustee,without consideration,the property described on Schedule A, and 
my trustee acknowledges receipt of this property.Although I am 
married,this trust has been funded exclusively with my separate 
property.It is my intent that all property of the trust shall retain its 
character as my separate property, and it shall be presumed that all 
assets of the trust are my separate property.If my spouse proves any 
community property interest in any trust asset, that community property 
interest shall be limited to the interest proved in that particular 
asset, and shall not create a community property interest in any other 
asset of the trust.

1.3(b)_Addition of Assets_.The trustee is authorized and empowered to 
receive by gift or Will or otherwise any real or personal 
property,securities,sums of money,proceeds of retirement plans,policies 
of life insurance or other assets from the Settlor or any other person 
or persons for the purposes of this Trust Agreement.However,at no time 
may community property be added to this trust.Any asset added to the 
trust shall be presumed to have become my separate property upon 
acceptance.

Good luck!

Felicia

> *From:*wsbapt-bounces at lists.wsbarppt.com 
> <wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Ms. Roberta Armstrong
> *Sent:* Tuesday, November 20, 2018 12:54 PM
> *To:* wsbapt at lists.wsbarppt.com; wsbarp at lists.wsbarppt.com
> *Subject:* [WSBAPT] Inheritance as Separate Property in Rocky Marriage
>
> Hello Listserve,
>
> Wife is having surgery in early December. She wants to do a will to 
> solely benefit her children. A few months back she inherited ~$1.6 
> million estate from her mother. Prior to receiving this inheritance, 
> the only income she received was from state assistance.
>
> She has the money in various investment accounts with her name only, 
> but receives an amount of ~$2,000/month to keep her state benefits. 
> She has made improvements/repairs to her and her husband community 
> home in the nature of $40K – roof and other necessary repairs. She 
> also purchased property in Oregon which she has titled in her name alone.
>
> The husband is being aggressive toward her; for example, wanting her 
> to use money from her inheritance to pay for credit card debt that she 
> believe is his separate debt (her name not on the card but was 
> acquired during the marriage).
>
> Not sure why she is not considering divorce, but she is clear that she 
> does not want her husband to get any part of her inheritance.
>
> What’s the best method for her to disinherit the husband in regards to 
> her inheritance from her mother? I’m concerned about the use of funds 
> (albeit from her separate account) for community home repairs. Could 
> this action be considered commingling…? Could the husband go after the 
> accounts even if they are in her name alone and she did a beneficiary 
> card naming only her children? Does the husband have a spousal 
> election right in her inheritance is she attempted to disinherit him 
> by will…?
>
> Thank you in advance for your thoughts.
>
> Warmest regards,
>
> Roberta
>
> *Ms. Roberta Armstrong, Attorney*
>
> WSBA No. 42343
>
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-- 
Felicia Value
Attorney at Law
PO Box 578/116 N. Third
La Conner,  WA 98257
(360) 466-2088
Felicia at skagitprobate.com

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