[WSBAPT] funding trust with nonprobate assets

[Diane J. Kiepe]

Because the assets are in the son's name now, I would set it up a gift transfer from brother to sister into a trust adopting SNT terms (so no Estate Recovery).  Had he not transferred the funds there could have been a TEDRA or even a disclaimer but, in my opinion, the gift option makes the most sense and actually creates potential pitfalls.  The gift will use about $10,000 of your client's Estate and Gift tax exemption if made all at once but in this day and age that's nothing.

Good luck.



From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of delp at whidbey.net
Sent: Thursday, October 17, 2019 1:11 PM
To: Elder Law Section <elder-law-section at list.wsba.org>; 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] funding trust with nonprobate assets

Hello everyone: I am working on an estate in which the decedent designated his son as a Transfer on Death beneficiary of all of his assets.  Son transfers all of these financial accounts into his own name. Then, Son meets with me and shows me his dad's Will which gives $50,000 to a Special Needs Trust (SNT) for the daughter of the decedent.  Son is absolutely certain that funding the SNT was what his dad wanted, notwithstanding the beneficiary designations on all the financial accounts to the contrary.  Son is named Personal Representative in the Will and Trustee of the SNT.  Can son transfer funds, now in his name, to fund the SNT?  Is it necessary open a probate to do this? Probate or not, how would we document that the transfer from the Son to the SNT account is a distribution from the estate and not a gift from the son?
I appreciate your thoughts.
Thank you,
Margaret

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Law Office of Margaret Delp
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