[WSBAPT] Unneeded Credit Shelter

Tue Apr 19 08:49:21 PDT 2022

Anytime I vary from the directions of the Will, I TEDRA.  In this case, you indicated all beneficiaries are the same (common) but I still would memorialize it in a TEDRA.  I would also suggest, the assets that would have funded the credit shelter trust have one basis and the assets of the surviving spouse may very well have a different basis due to the lapse of months (particularly with real estate and investment accounts in this day and age) and I would want my clients to understand why - adding this to my TEDRA.

Best of luck.

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 Marcus J. Fry
Sent: Monday, April 18, 2022 11:14 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Unneeded Credit Shelter

Shannon:
My 2 cents. If it is clear that both estates combined would be under the exemption, then I have no concern with distributing directly to the heir from the estate.  However, if the CST is needed to avoid any confusion about the 2nd estate exceeding the exemption limit, then I would do a TEDRA or at least a written understanding between the trustee and beneficiary that outlines what has transpired to document the situation in case questions later arise.

Marcus J. Fry
Attorney | Witherspoon * Kelley
mjf at witherspoonkelley.com<mailto:mjf at witherspoonkelley.com> | Attorney Profile<https://www.witherspoonkelley.com/marcus-j-fry> | vCard<https://www.witherspoonkelley.com/s/mfj.vcf>

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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 Shannon Jones
Sent: Monday, April 18, 2022 10:57 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Unneeded Credit Shelter

Listmates, What is the recommended course of action when you have a revocable living trust requiring funding a creditor shelter trust, first spouse dies and surviving spouse then dies only a few months later, and we have a total estate well under the WA estate tax exemption? Credit Shelter and Survivor's Trusts all end up distributing to the same persons. Do we have to fund the credit shelter when it accomplishes no useful purpose? If we don't fund the credit trust, do I need a TEDRA? Shannon

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Shannon R. Jones | Attorney
Campbell Barnett PLLC
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