[WSBAPT] Using TEDRA to divert funds from overfunded credit shelter trust to fund QTIP trust

[John Creahan]

I agree that this is a complex situation.
A couple of questions: Is the surviving spouse the sole beneficiary of the credit shelter trust? Are there non-tax reasons that the gifts were made in trust, rather than outright – blended family, spendthrift issues, etc? Does the will use the term “marital” (or something similar) when describing the gifts in trust?

John Creahan
www.cairn-law.com<http://www.cairn-law.com/>
206-578-5877
Fremont office:
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103


From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jose L Sanchez
Sent: Friday, January 17, 2020 4:04 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Using TEDRA to divert funds from overfunded credit shelter trust to fund QTIP trust

An estate with $6M has all of the funds going to a credit shelter trust and no funds going to the marital QTIP trust. How likely is the WA DOR to challenge a nonjudicial binding agreement that funds the marital deduction QTIP trust instead of the credit shelter trust?

Thanks for your feedback.

Jose L. Sanchez
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