[WSBAPT] wrongfully excluded heir

[Eric Nelsen]

Lots of tax implications if it's done by any method other than inheritance. I have done the heirs-gift-to-excluded-child method but only where the individual gifts were below the federal annual gift exclusion limit (currently $15,000, but lower back when I did this in a case).

I think best bet on your facts, assuming there isn't a fact problem I don't know about, is a TEDRA Agreement executed by all heirs, indicating that the Will should be reformed because its provision concerning the excluded sibling is in dispute, that everyone agrees that the true intent of the testator was to provide equal benefit to all children, that the testator made a mistake of fact in excluding the sibling (not realizing that the expected benefit was not received or was not certain to be received), and that but for that mistake, the testator would have included all children as equal heirs. And therefore, the heirs all agree that the Estate should be split in equal shares. That way everyone gets the distribution as inheritance and the tax implications go away.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Allen Draher
Sent: Thursday, January 10, 2019 10:14 AM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] wrongfully excluded heir

I'm meeting with a potential client.  She is the named PR in parent's will.  Estate passes to all but one sibling.  This sibling was excluded because of some benefit to be received that wasn't and all other siblings want to divide estate among all siblings.  Each share will be several hundred thousand dollars, but estate will be under WA State Estate Tax limit.  I suppose each sibling could gift to the excluded sibling and file Federal Gift Tax Returns.  With the current federal exclusion amounts not likely to be an issue using some of the existing credit, but who knows what the future will bring.  Has anyone a more creative solution they've used?  Have excluded sibling file a creditor's claim that is approved by the PR with non-intervention powers?  (I would have other siblings consent in writing).  TEDRA?  Thank you.

Allen Draher

Law Office of Allen Draher, PLLC
5426 California Ave. S.W.
Seattle, WA 98136

ph   206-935-2998
allen at draherlaw.com<mailto:allen at draherlaw.com>

__________________________________________________________

NOTICE:  This communication (including any attachments) may contain privileged or confidential information intended for a specific individual and purpose, and is protected by law.  If you are not the intended recipient, you should delete this communication and/or shred the materials and any attachments and are hereby notified that any disclosure, copying or distribution of this communication, or the taking of any action based on it, is strictly prohibited.  Thank you.
__________________________________________________________

To comply with IRS regulations, we are required to inform you that this message, if it contains advice relating to federal taxes, cannot be used for the purpose of avoiding penalties that may be imposed under federal tax law.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20190110/167096a0/attachment.html>