[WSBAPT] Testamentary Trust

[Andrekita Silva]

  Law Office of
F.ANDREKITA SILVA
________________________________________________________________________
 
.                                                        
                               November 17, 2020

List serve,

                 I understand that the proceeds from a wrongful death  
action do not belong to the estate, rather to the beneficiaries (thank  
you to Eric Nelsen for a really great summary on this issue earlier  
this year). I also understand the proceeds from a survival action are  
more of a muddle. I know there are no taxes for pain and suffering  
experienced by the decedent for a physical injury.
                 I’d like to close the probate with a Declaration of  
Completion. Without the survival/ wrongful death action, the estate  
had extremely modest assets and we settled with all creditors. But,  
the Declaration of Completion must say all U.S. and Washington estate  
tax due as a result of Decedent's death have been determined, settled,  
and paid.
               So, if we decide that settlement proceeds are for pain  
and suffering of the decedent, can I assume that this statement about  
taxes applies to only the Estate?   This has nothing to do with any  
taxes that the beneficiary might owe in their own U.S. state or  
foreign country?
               The proceeds from the survival/ wrongful death action  
are in my trust account.  I would prefer to pay the net proceeds to  
the personal representative for HER to distribute to the beneficiaries  
(herself and her brother.) They are in agreement as to how much they  
will each receive.  My main concern is to avoid liability for myself  
if there is a tax issue down the line.  Is this okay to do?
 
andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com
 

 

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