[WSBAPT] valuation question

[Diane J. Kiepe]

Thanks for the insight!

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 Philip N. Jones
Sent: Saturday, May 30, 2020 6:30 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] valuation question

I really don’t think it can be valued accurately.  The parties might agree on some arbitrary number, but that is not a valuation.
I had one case where the lifetime beneficiary was VERY wealthy, so we decided that the corporate trustee would be very unlikely to distribute any principal under the HEMS standard, and so we valued the potential HEMS distribution at zero, because the trust allowed the trustee to take into account the beneficiary’s other resources.  But that was an unusual situation.
Phil Jones
Portland, OR
Philip N. Jones
Duffy Kekel LLP
Portland, OR
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371


On May 29, 2020, at 3:36 PM, Diane J. Kiepe <DJKiepe at depdslaw.com<mailto:DJKiepe at depdslaw.com>> wrote:

How does one value a remainder interest in a trust fund when the lifetime beneficiary is entitled to principal distribution for HEMS, if the remainder beneficiaries agree for the trust to be terminated early without compensation?  Do you just  ignore the potential principal payments to lifetime beneficiary and calculate the remainder interest on the assumption that no principal will be paid out?

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

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