[WSBAPT] Ideas to correct inconsistent naming of trust?

[Setareh Mahmoodi]

Hi Laura,

The trust is 11 years old and from another state, I would encourage them to
restate and revert back to the original name especially since all
other assets are still fully funded to the original trust/name. Is the WA
property their primary residence? If so, I would document the name issue in
the recitals just in case there are other assets or unresolved issues to be
safe. However, I would also advise the clients of the option that they
could QC the home to themselves individually and then back to the original
trust name if they want to be certain there won't be any issues with title
companies etc later. It would cost an additional ~$400 or so because of the
price increase for recording, but it would eliminate any potential
hassle... In the alternative, depending on the county, they could do pocket
deeds (not record if the cost is a concern), but keep it with the trust
just in case there is an issue later for them or the successor trustee.
Since it is a nontaxable event it could work.

Hope this helps!

Setareh

On Thu, Jul 29, 2021 at 3:33 PM Laura Latta <laura at lauralatta.com> wrote:

> Listmates,
> I could use your help sorting out an issue with assets being funded in
> different names for the same trust. Here's the situation (names and dates
> changed for confidentiality):
> Clients, living in another state, establish a trust in 1999 entitled "The
> Smith Living Trust." They fully fund all assets to the trust in this name.
> In 2010, they execute a restatement in the same state. No one notices that
> the name of the trust is accidentally changed to Smith Family Trust.
> Assets remain funded in the original name of the Trust.
> Flash forward to 2021, clients come to me for the first time because they
> are moving to WA and need to change the trust situs to WA. I catch the
> naming issue.
> It would make sense to simply change the name back to Smith Living Trust
> EXCEPT that the home they just purchased in WA is titled in the name of
> Smith Family Trust with the deed prepared as part of the original purchase
> transaction.
> How would you fix this?
> When I have sometimes had one peice of real property mistitled, I've
> listed both names (the correct name and whatever is on the deed) as part of
> the restatement.
> Am I right that we can't quitclaim the new house to the trust in the
> correct name because it's not a different trust. This isn't a reconveyance.
> But it's also not a "fix" because at the time the property was purchased it
> was the correct name of the trust.
> Should I simply add recitals to the trust, detailing the naming
> conventions? What would you do about the deed to the new house?
> All thoughts and ideas are appreciated.
> Warmly,
> Laura
>
> --
>
>
> *Laura LattaLaw Office of Laura Latta PLLC*
>
> she/her
>
> Phone (206) 841-2344
>
> www.LauraLatta.com
>
> PO Box 82356
>
> Kenmore, WA 98028
>
>
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-- 

*Best regards, *


*Setareh Mahmoodi *

*Attorney at Law *

*18222 104th Ave NE, Suite 103*

*Bothell, WA 98011*

*Phone: 425-806-1500*

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