[WSBAPT] RLT question

[David King]

Who are the members or shareholders of the entities holding the
properties?  That seems to me to be the most pertinent question re: trust
funding and RLT usefulness here.  If Trustee / Trust holds the business
interests, this can work.  Trustee would not be the outright owner of the
properties if they are held by business entities but can control the
properties through the business ownership.

On Tue, Sep 25, 2018 at 10:49 AM Marvin Benson <marvinbensonlaw at gmail.com>
wrote:

> I also do not see that the RLT is doing them any good with properties
> outside the trust.  Since they are not interested in probate avoidance, it
> might be better to redo the will so it is not a pour over will.
>
> Marvin Benson
>
> On Tue, Sep 25, 2018 at 10:22 AM Kim Hammit <kim at gsjoneslaw.com> wrote:
>
>> I was presented with an estate package that clients want to revise.
>> There is a RLT, pour over will, reciprocal POA, separate general durable
>> POA (not sure why separate), HC Directives.  They have several properties –
>> some are in LLC, some in INC, some individually and one is joint with child
>> (they want this to stay out of estate and just go to daughter since they
>> are just cosigners on the loan.  The trust schedule shows all properties
>> under each business but they were not deeded to the trust, in fact none of
>> the properties were ever deeded to the trust.  Wouldn’t that require a
>> probate of the pour over will to get those properties into the trust at
>> death?  What is the point of a trust in this scenario?  I don’t want to run
>> up a big bill for the clients redoing everything but I don’t see a real
>> need or benefit of the RLT if the properties are in the individual
>> businesses, not the trust.  Total NET value of estate is around $1.7M and
>> there are no out of state properties.  Neither client particularly cares to
>> avoid probate nor are they terribly concerned about post-death disputes.
>> Since none of the properties were transferred to the trust, is there any
>> potential harm in simply doing away with the trust and providing for
>> potential tax concerns in testamentary trusts?
>>
>>
>>
>>
>>
>> Kimberly S. Hammit
>>
>> Associate Attorney
>>
>>
>>
>> GSJONES LAW GROUP, P.S.
>>
>> 1155 Bethel Avenue
>>
>> Port Orchard, WA  98366
>>
>> Tel:  (360) 876-9221
>>
>> Fax: (360) 876-5097
>>
>>
>>
>>
>>
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-- 
David M. King, Attorney

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