[WSBAPT] 401K to pay off mortgage at death

[Diane J. Kiepe]

Jennifer, I would second Heather’s sentiments but add that before I made my the estate the payee, if the goal is truly to pay off the mortgage, then a testamentary trust should be established to receive the houses and the funds – in this way the other general creditor’s won’t have a crack at those funds.  You see, if you make it payable to the estate, those funds are available to general creditors and you may wind up with the mortgage and those funds spent elsewhere.  Happy to chat with you over the weekend if you want to walk through some thoughts – I know saying things out loud can help sometimes.

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 Jennifer Johnson
Sent: Thursday, December 16, 2021 8:14 AM
To: Heather de Vrieze <heatherd at westseattlelaw.com>
Cc: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] 401K to pay off mortgage at death

Thank you Heather, I appreciate your response.  Those are questions that I am asking, and other options are being explored.

Jennifer

Jennifer M. Johnson
Title Officer | Attorney
Wahkiakum Title & Escrow Co.
Hanigan Law Office, PS
68 Main Street / P.O. Box 39
Cathlamet, WA 98612
(360) 795-3494
(360) 795-3001 (f)
www.wahtitle.com<http://www.wahtitle.com>

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‐‐‐‐‐‐‐ Original Message ‐‐‐‐‐‐‐
On Wednesday, December 15th, 2021 at 2:52 PM, Heather de Vrieze <heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>> wrote:


This seems like an incredibly bad idea. Why do they want the mortgage paid off? Who will benefit from the home? Can that person be the beneficiary of the 401k as well so that they can use the funds to make mortgage payments?



Even if it wasn’t a bad idea, I don’t think it is workable without making the estate the beneficiary. I’m working on an estate right now where the child/PR is the named beneficiary of the IRAs, but the Will provides that “one of the IRAs be used to make the following specific gifts. . . .” and it goes on to identify specific dollar amounts to about 15-20 individual beneficiaries. Fortunately the daughter seems amenable to using other estate assets to pay the specific bequests, and there are other assets available.



Directing how to distribute or spend qualified retirement accounts in the Will is quite problematic.



Heather



Heather S. de Vrieze
Attorney-at-Law

[cid:image001.jpg at 01D7F258.5D47A820]

3909 California Avenue SW

Seattle, WA 98116-3705

(206)938-5500

heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>

www.westseattlelaw.com<http://www.westseattlelaw.com/>

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Jennifer Johnson
Sent: Wednesday, December 15, 2021 1:37 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] 401K to pay off mortgage at death



Good afternoon all



Client would like to include a provision in her Will stating that the mortgage on her primary residence will be paid off using the funds in her 401k.  Is there a way to do this without designating her estate as the beneficiary of the 401k?



Thank you in advance for your time and advice.



Jennifer M. Johnson

Title Officer | Attorney

Wahkiakum Title & Escrow Co.

Hanigan Law Office, PS

68 Main Street / P.O. Box 39

Cathlamet, WA 98612

(360) 795-3494

(360) 795-3001 (f)

www.wahtitle.com<http://www.wahtitle.com>



CONFIDENTIALITY NOTICE:  THIS EMAIL IS INTENDED TO BE A CONFIDENTIAL AND PRIVILEGED ATTORNEY-CLIENT COMMUNICATION.  IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS EMAIL, PLEASE DO NOT READ OR PRINT IT.  This transmission is intended for the sole use of the individual and entity to whom it is addressed, and may contain information that is privileged, confidential, and exempt from disclosure under applicable law.  You are hereby notified that any dissemination, distribution, or  duplication of this transmission by someone other than the intended addressee or its designated agent is strictly prohibited.  If your receipt of this transmission is in error, please notify the sender immediately by calling 360.795.3494, or by reply to this transmission, and then permanently delete the message.

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