[WSBAPT] Transfer of RP TO CST+

[Philip N. Jones]

I generally agree with Jeff, but I think that use of the assets does not necessarily prevent later funding, except if the funding is to be done by disclaimer.
But again, this is a gray area, as the article suggests.  Lots of ideas and concepts, not a lot of really clear answers.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jeff at bellanddavispllc.com
Sent: Monday, November 8, 2021 2:55 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Transfer of RP TO CST+

Ken,

This is an interesting question that I run into more often then I like.  First, if the credit trust is set up by a disclaimer, it is too late.  However, if the trust is funded under, what I call, forced funding, meaning on the death of the first trustor, the trustee shall divide up the trust into the survivor and decedent (credit) trust, I think you can still do it.  The only question will be is if the survivor has used the assets, i.e. the house, will the IRS say the survivor has accepted those assets as her own and cannot now fund the credit trust.  I say try setting up the credit trust.  However, I look forward to other responses.

Jeff


W. Jeff Davis
BELL & DAVIS PLLC
P.O. Box 510
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Phone: (360) 683.1129
Fax: (360) 683.1258
email: jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>
www.bellanddavispllc.com<http://www.bellanddavispllc.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 Ken Luce
Sent: Monday, November 8, 2021 2:17 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Transfer of RP TO CST+

RLT created that contains a provision for a credit shelter trust upon passing of the first. Real property transferred to RLT, husband dies.  Five years have passed and CST not set up and property still in name of RLT.   Can the credit shelter trust now be set up and the property be transferred to it without consequences?

Kenyon Luce
Luce & Associates, P.S.
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