[WSBAPT] Living Trust for Minors

[Philip N. Jones]

Does he want to exclude these funds from his gross estate for estate tax purposes if he dies before the funds are distributed at age 30?  The terms he describes will not accomplish that goal.  In essence, he has to use someone else as the trustee.  Plus, if he wants to use the federal gift tax annual exclusion, he has to use Crummey withdrawal powers.  There are probably lots of other issues that will come up in the drafting, but those are the two most significant issues that come to mind.
Phil Jones
Portland, OR

Philip N. Jones
Duffy Kekel LLP
Portland, OR
pjones at duffykekel.com
(503) 226-1371

On Oct 9, 2020, at 11:29 AM, Betsy Wurdeman <BetsyW at law-hawks.com> wrote:


Hello,

I have a client who (in his words) wants to create a trust for his children that he can deposit into monthly with the goal of them retaining “ownership” over the assets but with him remaining in control of how they use it and when.  For example, he expects that there will be $300,00 or $400,000 in each account by the time the children near college age and he wants them to be able to use the funds for select things that he approves of, such as for college, funding a start up company, etc.  He has 529 accounts started, but does not want to keep contributing to those and instead wants to create this trust for their benefit.  He wants to be able to restrict access for withdrawals that he doesn’t approve of (for fancy cars, he mentioned), or if the child becomes financially incapacitated.  He wants them to have ultimate access and use of the funds when they turn 30.

Would anyone be willing to talk through this scenario with me and/or share RLT language that they think might be of assistance?  I appreciate any guidance you are willing to provide.  Thank you all!!

Elizabeth 'Betsy' Wurdeman
Of Counsel
Attorney and Counselor at Law

HAWKES LAW FIRM, P.S.
19944 Ballinger Way NE Ste #100
Shoreline, WA 98155
Tel. 206.367.5000     Fax. 206.367.4005
betsyw at law-hawks.com<mailto:elizabethj at law-hawks.com>
www.hawkeslawcenter.com<http://scanmail.trustwave.com/?c=4062&d=moij35NKybbYscINcjNcZ6oYTbcKvCTPok43NqorNQ&s=1714&u=http%3a%2f%2fwww%2ehawkeslawcenter%2ecom%2f>


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