[WSBAPT] Dynasty Trust and TEDRA

[Shannon Jones]

Listmates, I represent the current Trustee of a trust where the initial grantor provided a dynasty trust for her child and grandchildren on grantor's death. Grantor died and we've paid WA estate tax. We are in a position now to fund the dynasty trust; however, the only current beneficiary (who is also the current Trustee) wants to end the trust now. The only persons interested in the ongoing dynasty trust are the current beneficiary and her adult children. If we end the trust now, there could be detrimental outcomes for the dynasty trust beneficiaries -- more estate tax payable in the future and/or a change of plan whereby they will ultimately receive less inheritance than if the dynasty trust were funded. And yet, the Trustee and her adult children agree they want the trust to end and have requested a TEDRA agreement be drafted. The trust itself does not appear to prohibit the agreement, but does TEDRA allow it? Shannon

[cid:image003.png at 01D8177F.F3DF6920]
Shannon R. Jones | Attorney
Campbell Barnett PLLC
P: 253.848.3513| F: 253.845.4941
317 South Meridian
Puyallup, WA 98371
shannonj at campbellbarnettlaw.com<mailto:shannonj at campbellbarnettlaw.com>
campbellbarnettlaw.com<https://campbellbarnettlaw.com/>

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