[WSBAPT] wrongfully excluded heir

[Christopher Small]

Could you do a partial assignment of interest? Or is that treated as a gift?

Cheers,

Christopher Small
CMS Law Firm LLC <http://cmslawfirm.com>
150 Lake St. S., Suite 218
Kirkland, WA 98033
206.659.1512


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On Thu, Jan 10, 2019 at 10:42 AM Eric Nelsen <Eric at sayrelawoffices.com>
wrote:

> 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 <allen at draherlaw.com>*
>
>
>
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