[WSBAPT] Estate Planning Qs with regards to Real Property

[Jane Bitz]

I think you would only need a Guardianship of the Estate until the nieces turn 18 and the other relative could petition for Non-Parental Custody. 

If there is an existing Guardianship, the other relative should be named by the existing Guardians as the Successor Guardian in the Court file.

Jane.

Jane G. Bitz
Of Counsel
Wolff, Hislop & Crockett, PLLC
12209 E. Mission Ave, Suite 5
Spokane Valley, WA 99206-4824
(509) 927-9700 x126
FAX: (509) 777-1800


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-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Thursday, August 27, 2020 3:30 PM
To: mark at harbingerandassociates.com; WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Estate Planning Qs with regards to Real Property

Mark,

One immediate thought that came to my mind is to discuss if there should be one trust for both girls and if one trust will distributions be based on need, equalization required, etc. etc.

Second thing that pops into mind is to use precatory language saying it is the Testator's strong preference that the Guardian move in but you never want to force someone to stay in a house that might not, at the time meet the best needs.  What if it really depresses the girls for example, to be there without auntie and uncle.

Lastly, you will want to consider the guardianship of person versus funds - if it makes sense to separate those roles or if X is still going to be Trustee if not guardian.

Just a few thoughts 

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com
509-455-5300

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Mark A. Morenz-Harbinger
Sent: Thursday, August 27, 2020 1:48 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Estate Planning Qs with regards to Real Property

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

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