[WSBAPT] Estate Planning Qs with regards to Real Property

[Mark A. Morenz-Harbinger]

Hello All,

Would love to avail myself of the wisdom of the group. Client is 
co-guardian (with his wife) of two great-nieces, who are both minors. 
Their house is not yet fully paid off. There is a relative (X), not a 
natural parent, who is willing to move in-state and be the girls' 
guardians if both of them die.

This was my thought as to steps:
1. LI secondary beneficiary (primary is spouse and all of the rest of 
this only matters if she predeceases him) is to be Relative X, as 
Trustee of Testamentary Trust on Behalf of Grand-Nieces (minors).

2a. Upon death, LW&T creates Testamentary Trust; and
2b. LI proceeds go to Relative X as Trustee of that Trust.

3. Testamentary Trust terms say that i) Relative X must i) move into 
home; and ii) use LI proceeds first to pay off mortgage, then for 
benefit of Grand-Nieces.

[4. In separate process Relative X will also petition Court to be 
Guardian. We cannot just use a DPOA for this since that statute is only 
available to natural parents.]

5. Testamentary Trust terms also direct, either if Relative X cannot 
physically move in to the home, or guardianship petition somehow fails, 
or upon the girls both reaching a certain age, that the house shall be 
sold for the benefit of the girls.

6. Relative X is also named UTMA property custodian in case it is 
necessary.

MY QUESTIONS:
√ ...Does this approach cover the bases, or is there a gap in my 
reasoning here? I originally was so worried about due-on-sale clauses 
that I thought an RLT would be needed, but, upon further review of 12 US 
§1701j-3, now feel like the LW&T handles it.

√...Further, am I right in thinking that, regardless of how it plays 
out, that the LI proceeds will be protected under 48.18.410?

I know the devil's in the details and much depends on drafting, and if 
anyone has some testamentary trust language I'll take it; but mostly I 
just wanted to make sure there were no gaps that I had missed.

Thanks so much!

Best,
_Mark

-- 
Mark A. Morenz-Harbinger, Attorney-at-Law
HARBINGER LAW, PLLC // "See Success"
Ph: (360) 932-3987 // Fx: 866-501-8913
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