[WSBAPT] (no subject)

Wed Apr 27 12:16:08 PDT 2022

Jane-

Thanks for that insight

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 Jane Bitz
Sent: Wednesday, April 27, 2022 10:48 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] (no subject)

One other consideration for a life estate is that the State can make an estate recovery from the value of a decedent’s life estate if they receive Medicaid assistance for long term care during their lifetime. And if the surviving partner’s children want to “buy out” the life estate from their parent, the values are assigned by a life estate valuation chart that is not very favorable and certainly not governed by real world market values. Example: the life estate for 75 year old is .52149 of the fair market value of the property interest.

So if the surviving partner owns 40% of the property and the life estate for the 60% share, the State could recover up to about 72% of the value of the property at the death of the surviving partner. The State’s estate recovery is dollar for dollar of what the Medicaid program spends on the surviving partner’s care.

Jane.

Jane G. Bitz
Of Counsel | Wolff, Hislop & Crockett, PLLC
Helping Good People do Great Things!
12209 E. Mission Ave., Suite 5
Spokane Valley, WA 99206
(509) 927-9700 (Phone)
(509) 777-1800 (Fax)
jbitz at whc-attorneys.com<mailto:jbitz at whc-attorneys.com> [Email]
www.whc-attorneys.com<http://www.wolffandhislop.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 Diane J. Kiepe
Sent: Wednesday, April 27, 2022 9:55 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] (no subject)

Honestly, in my opinion, there is no good way to do this because there is no telling how long survivor will stay, the condition of property on first death versus second death, etc.  That being said, many people want it done.  Some thoughts for consideration:

  1.  Life estate in decedent’s interest in favor of survivor with clear language on split of responsibility for property taxes, repairs, ability for improvements to be made, right of remainder benes to review property on proper notice, etc.
  2.  Consider allowing survivor the right to purchase the home at current FMV  (or whatever terms).
  3.  Put home into revocable trust now with clear terms and allow one child from each family to serve as Trustee.

I’m sure there are other creative ways to address this fact pattern but in the end, most my clients want to do the Life Estate – I warn them that it’s a potential recipe for disaster but in the end, the client is my boss so long as what they want is not violating any laws or rules of ethics.

Good 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<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Lynn Clare
Sent: Monday, April 25, 2022 10:55 AM
To: WSBA Probate & Trust listserve <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] (no subject)

Unmarried PC's own a home together as TIC with a 60/40 split of interest. They want their adult children from previous relationships to inherit their estates including their share of the house.

BUT they want the surviving partner to be allowed to live in the house for as long or as little as needed while still ensuring that both sets of heirs inherit when the second partner passes.

What's the best mechanism for doing this?

Lynn Clare
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