[WSBAPT] Bequest question

[Mark Vohr]

Suzanne:

            From you question I am gathering you have a trustor (who may or may not be the trustee) who transferred assets to a trust and now wants to gift one of those assets to someone who is not a permissible distributee.  I don’t understand the part of the question or the conclusion that says “Otherwise just list in personal property distribution list if/when acquired?”  That line/comment does not really seem to fit a trust scenario.

            The answer to the part of the question I do think I understand is that it depends.  A lot depends on the actual language of the trust, but generally the only person entitled to distributions is the permissible distributee.  See RCW 11.98.002(1). However, there are a lot of other possible scenarios for which there are not enough facts to guide us. For instance:

Is the trust revocable?  Does the trustor have the authority to swap out assets so that the item can be removed and something of equal value put in its place?  Can the trustor get agreement from all the interested parties to make the transfer?  Can the trustor make a distribution to a permissible distributee who can thereafter, if the permissible distributee wants to and is not being coerced, transfer the asset to a third party?

So  - I would have to say that based on the facts provided, it is tough to fully answer your question.  Based on what we have to consider (and based your own conclusion) the answer would probably be no.   More facts might result in a different answer.

Regards,

Mark

Ohana Fiduciary Corp.
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Suzanne Lieberman
Sent: Friday, June 11, 2021 9:05 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Bequest question

Good morning,

Can a trustor gift an asset (e.g.a boat or vehicle) to someone that they don't currently own and may or may not acquire in the future? I seem to recall from law school that this can't be done but I can't confirm it online. Otherwise just list in personal property distribution list if/when acquired?

Sincerely,

Suzanne Lieberman
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