[WSBAPT] Dynasty Trust and TEDRA

[Diane J. Kiepe]

Hello Shannon,

While TEDRA is sweeping and would likely allow this agreement, I would move forward carefully.  Specifically, if there are any children of the adult children, they are defined as partis and if any are minors, you need to consider a Special Representative.

One thing I would look at in this case if they came to me, was how broad the distribution provisions are.  If they are super narrow (education and xxxx only) I would be hesitant.  I would also review the trust purpose  provision, if one exists (I confess I often am moving so fast I don't think to add that).  That could shed some light.  Last but not least, be mindful of who you represent and how you will paper your file if the agreement is put in place.

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 Shannon Jones
Sent: Tuesday, February 1, 2022 3:26 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Dynasty Trust and TEDRA

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:image001.png at 01D81781.56B8A0B0]
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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