[WSBAPT] uncertain contingent beneficiaries under exercise of power of appointment

[cyfield at rockisland.com]

Mates- I'm reviewing a new trust/estate admin matter and have an issue I
can't get my brain around. Specifically, surviving spouse (Mom) of joint
family trust had a general power of appointment with respect to the
"survivor's trust" and she exercised that power before she died as follows:

 

              I leave 42% to son and 58% to my daughter. If either of my
children predeceases me, his or her share of my estate shall be distributed
to his or her issue by right of representation.  

 

Son predeceased Mom and had no issue (or spouse). So where does son's share
now go? Surviving daughter/successor trustee/new client thinks to her, but I
don't see any specific language (e.g. "surviving children") to that effect.
To son's estate? I have no idea if son's estate was probated and/or if he
died intestate. However, I suspect son died intestate and Mom was his sole
heir -if true, that creates a circular problem in that potentially Mom's
estate pumps assets out to son's estate, which then pumps them back to Mom's
estate. and the dance is repeated.  If daughter is now sole living intestate
heir of both Mom and brother, can she enter into a TEDRA agreement with
herself to clean things up? 

 

I'm trying to get a better handle on this before I get back to the new
client and feel like I may be missing something obvious. TIA for any
enlightenment, Cy

 

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon); Phone:
360-472-1223 

Mail: POB 367, Shaw Island, WA 98286; Physical Office:  640 Mullis St #214,
Friday Harbor, WA

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