[WSBAPT] ILIT - MARITAL TRUST SAVINGS LANGUAGE

Tue Nov 9 09:16:23 PST 2021

Jerimy,

That is exactly why I don’t have them sign off and just let them lapse naturally under the terms of the trust because that is my understanding and to me that particular issue is so confusing I don’t want to risk having the trust terms trumped by a full waiver.   I was curious what others were doing though as I’m drafting 2 end of year ILITs.

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: Jerimy Kirschner <jerimy at jkirschnerlaw.com>
Sent: Tuesday, November 9, 2021 7:31 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Cc: Diane J. Kiepe <DJKiepe at depdslaw.com>
Subject: Re: [WSBAPT] ILIT - MARITAL TRUST SAVINGS LANGUAGE

Wouldn't having the Crummey Beneficiaries sign off constitute a gift which does not qualify for the lapsing 5 by 5 exemption?

On Mon, Nov 8, 2021 at 7:22 PM Laura Latta <laura at lauralatta.com<mailto:laura at lauralatta.com>> wrote:
Yes to both questions. Though I don't trustee any ILITs. I do advise that the trustees get the beneficiaries to sign off. I don't think it's required to qualify for the gift exclusion, but it's a good practice in my opinion.

On Mon, Nov 8, 2021 at 5:37 PM Diane J. Kiepe <DJKiepe at depdslaw.com<mailto:DJKiepe at depdslaw.com>> wrote:
Hello List Folk,

I am curious of how many of you out there draft ILITs with Marital Trust Deduction Saving clause such that if any portion of life insurance proceeds are pulled back into one’s estate that portion is set aside in a qtip type trust.  One example where this may happen is if a life insurance policy is put into trust and the transferor fails to survive the requisite 3 year period related to the transfers of life insurance policies.

While we are at it, can I ask anyone inclined to answer if you  have your crummey beneficiaries sign off that they are not exercising their demand rights?  I tend to not do this and just allow the time to pass as provided for in the crummey notice (and of course my document has hanging crummey language).

Thanks in advance for any insights.

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

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