[WSBAPT] Residency and representation question

[Philip N. Jones]

If they are likely to be exposed to the Washington (and Oregon) estate tax, they might be better off using LLCs, rather than trusts.  The recently-announced change in the WA Dept. of Revenue policy deals with LLCs, not trusts, as I understand it.  So now Oregon and Washington both honor LLCs as intangible assets for purposes of the fractional estate tax formula.  And Alaska has no estate tax.
I express no opinion on where their legal residence is.
Phil Jones
Portland, OR


From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jennifer Johnson
Sent: Thursday, July 30, 2020 3:21 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Residency and representation question

Hello all,

Potential clients would like to put multiple pieces of Washington real property and one parcel of Oregon real property into a trust for estate planning purposes.  In talking to them, they stated that, though they are currently living in one of their Washington homes, they consider themselves Alaska residents (one of the spouses wants to reside permanently in Washington but they’re still discussing that).  They vote in Alaska, receive most of their mail there, and have their vehicles registered there.  They just recently sold their real estate there, though, and stay with a daughter when they go back.

My immediate question is, is there an issue I’m not thinking of when it comes to preparing their trust for them and having its situs be in Washington?  The trust situs RCW states that the situs can be Washington if an interest in real property located in Washington is an asset of the trust.  Is there a reason that I should be referring them to Alaska counsel since they seem to be Alaska residents?

I appreciate any advice you all may have.

Jennifer

Jennifer M. Johnson
Attorney
Hanigan Law Office, PS
PO Box 39 - 68 Main Street
Cathlamet, WA 98612
(360) 795-3494
(360) 795-3001 (f)

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