[WSBAPT] Assignment of beneficiary's interest in estate

[Diane J. Kiepe]

Jennifer,

I typically would memorialize such a distribution scheme in the form of a TEDRA (Trust and Estate Dispute Resolution Agreement – don’t let then name fool you – no true dispute has to exist).

You are correct that there is likely a deemed gift from mom to stepdaughters but unless the estate of the decedent or his mother is significant, the result of that is generally not a game changer.  I usually just note that the transfer may be found to be a gift for Federal Estate and Gift Tax purposes and each party (particularly mom here) will seek any tax advice from her advisor as she deems necessary.

Typically these are drafted by an attorney for the estate and if someone wants to get another lawyer they can but, under the facts you presented, I can’t see that happening.

Good luck – happy to answer any questions later in the week if needed.

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 Jennifer Johnson
Sent: Monday, June 20, 2022 1:45 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Assignment of beneficiary's interest in estate

Good afternoon all,

I've been asked to review an Assignment of Interest that was prepared for an estate beneficiary, and not having ever seen one (my probate practice is limited), I'm wondering about the practice and the pitfalls.

The details are that the deceased supposedly executed a Will leaving his entire estate to his two stepdaughters.  The stepdaughters have looked everywhere and have not been able to find the Will or a signed copy of it.  The deceased's intestate heir is his mother, who does not want to inherit.  His mother is the one who would be signing this Assignment of Interest to the two stepdaughters, since she believes that her son's intent was to leave everything to them.

Is this a common practice?  I know it isn't a disclaimer and assume the transfer would be treated as a gift for tax purposes.  Are there other pitfalls I'm not thinking of?

Thank you for your collective wisdom.

Jennifer

Jennifer M. Johnson
Title Officer | Attorney
Wahkiakum Title & Escrow Co.
Hanigan Law Office, PS
68 Main Street / P.O. Box 39
Cathlamet, WA 98612
(360) 795-3494
(360) 795-3001 (f)
www.wahtitle.com<http://www.wahtitle.com>

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