[WSBAPT] question about irrevocable trusts

[Diane J. Kiepe]

I would just add that there is a prohibition in WA for creditor protection over self-settled trusts.  I know there are attorney's who prepare "asset protection trusts".  Washington is not a APT state, in fact there is at least 1 WA case where creditor's were able to "pierce the trust veil" if you will for an out of state trust, WA state resident.

Best of luck,


Diane J. Kiepe

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



From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Susan Donahue
Sent: Wednesday, January 29, 2020 2:09 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] question about irrevocable trusts

Thank you, John.  This is very helpful and explains why my colleague and I got confused!

Susan


Susan Donahue
Law Office of Susan Donahue
125 West 2nd Avenue, Suite "B"
P.O. Box 81
Twisp, WA 98856
(509) 996-5944 (phone)
(509) 362-9692 (fax)
sdonahue at sdonahuelaw.com<mailto:sdonahue at sdonahuelaw.com>
www.sdonahuelaw.com<http://www.sdonahuelaw.com>



From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of John Creahan
Sent: Wednesday, January 29, 2020 1:46 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] question about irrevocable trusts

Yes, the trustor of an irrevocable trust can be a beneficiary, but, if so, the transfer to the trust will not be treated as a gift for transfer tax purposes. In other words, if the trust's purpose is to reduce the trustor's estate, the trustor canno retain any interest in the trust.
Hope this helps,
John

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<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Susan Donahue
Sent: Wednesday, January 29, 2020 12:20 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] question about irrevocable trusts

Hello to the list serve,

A colleague and I have been trying to get a definitive answer to the question:  Can the trustor of an irrevocable trust also be a beneficiary?

Does anyone have any insight on this?  My colleague and I would greatly appreciate your thoughts and citations to authority if any.

Thank you,

Susan

Susan Donahue
Law Office of Susan Donahue
125 West 2nd Avenue, Suite "B"
P.O. Box 81
Twisp, WA 98856
(509) 996-5944 (phone)
(509) 362-9692 (fax)
sdonahue at sdonahuelaw.com<mailto:sdonahue at sdonahuelaw.com>
www.sdonahuelaw.com<http://www.sdonahuelaw.com>

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