[WSBAPT] CA RLT for WA Client with Real Property in WA and CA

[Inge Fordham]

Brain trust,

I have a client who created a RLT in 1993, when he resided in CA.  The only asset transferred into the RLT is a 50% undivided interest in a parcel of real property located in CA, which is co-owned with the client’s sister.  Fast forward to 2020.  Client has resided in WA for a substantial period of time (15+ years), was married and widowed in WA state, and now owns real property in WA state.  He came to me requesting a will.  I asked him to send me all prior estate documents, which is how I learned of the prior RLT, which the client considers “from a former life” and “invalid” (this is not legally accurate but accurately conveys his intent).  He has a whole host of instructions for who should distribute his property and how it should be distributed, which (of course) vary substantially from the instructions contained in the RLT.  I don’t see any real clean cut options.

He could execute a new will, revoking the RLT and pour over will.  This would require him to transfer the CA property out of the name of the trust.  Once the property is back in his name, he could execute a transfer on death deed (which is recognized in CA) to dispose of the CA property upon his death.  If the beneficiary predeceases him, or if he leaves the property in his name, his personal representative will need to retain WA counsel to commence probate in WA retain CA counsel for an ancillary probate in CA.  That’s not ideal.  Alternatively, could he create a new RLT, revoking the prior RLT but in the same name.  Would the new RLT own the property that was transferred into the prior RLT if the name is the same?  This seems fishy to me.

Another option – leave the RLT in place but amend it to reflect his current wishes for distribution of property and persons charged with distributing said property.  I’m not a fan of amending other attorneys’ documents, especially where they were created out of state.  This RLT also contains numerous references to CA law and states that the trust shall be administered in the State of CA, or in the state in which the trustee resides, and shall be governed by the laws of the State of CA, or whichever laws the trustee considers to be more favorable form the standpoint of executing the trust.  This seems loosey goosey. If I were to prepare an amendment, could I address the specific changes to distribution of property and successor trustee (who resides in WA State), and then include a blanket statement that the grantor now resides in WA and intends that the trust be administered in WA state according to the laws of the State of WA?

Your thoughts on how to handle this quagmire would be greatly appreciated.

Thank you,


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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