[WSBAPT] What Kind of Trust

Tue May 10 13:43:56 PDT 2022

Cool.  Thanks,

James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com
www.doranlegal.com

On Tue, May 10, 2022 at 1:39 PM Philip N. Jones <pjones at duffykekel.com>
wrote:

> Try this article:
>
>
>
> How to Recognize a Grantor Trust, *Oregon State Bar Estate Planning and
> Administration Section Newsletter*, January 2020.
>
>
>
> You can find the article at this link:
>
>
>
> Est_2020Jan.pdf (osbar.org)
> <https://estateplanning.osbar.org/files/2020/01/Est_2020Jan.pdf>
>
>
>
> Philip N. Jones
>
> Duffy Kekel LLP
>
> 900 S.W. Fifth Ave. Suite 2500
>
> Portland, OR 97204
>
> pjones at duffykekel.com
>
> (503) 226-1371 – office
>
> (503) 853-1482 – cell
>
> (503) 226-3574 - fax
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Jim Doran
> *Sent:* Tuesday, May 10, 2022 1:21 PM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] What Kind of Trust
>
>
>
> Thank you.  I see the issues you raise.  The "grantor trust" as a way to
> avoid having to file separate Tax returns would be appreciated, I am sure,
> by the Trustee.  I am not familiar with that language.
>
>
>
> Jim
>
>
> James R. Doran
>
> Attorney at Law
>
> 100 E. Pine Street -  Suite 205
>
> Bellingham, WA 98225
> (360)393-9506
>
> jim at doranlegal.com
>
> www.doranlegal.com
> <https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.doranlegal.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7C43a0f13b53ce40be8dfe08da32c2f3fc%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C637878110173825019%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=PuBO8kKg6ExkRfauvZ4T8lWHgrGkxxGRE4xlnm6Xomw%3D&reserved=0>
>
>
>
>
>
> On Tue, May 10, 2022 at 1:12 PM Philip N. Jones <pjones at duffykekel.com>
> wrote:
>
> I do not practice in the area of special needs trusts, so I will not
> comment on that subject, but ignoring special needs, I have occasionally
> created trusts for people who need some mild protection from themselves.
> In those situations, I would create a trust with Mother as Trustor and
> Daughter as Trustee, and I would include language that prevents Mother from
> revoking the trust and making withdrawals, but I would also include
> language that would cause the trust to be treated as a grantor trust under
> the income tax laws.  You will need to consult with someone who deals with
> grantor trusts to determine what language would be appropriate (there are
> several options).  By doing so, the trust need not file separate income tax
> returns, and the income can be reported on Mom’s returns.
>
> They you would also want to consider including language that would make
> the assets includable in Mom’s gross estate for estate tax purposes.  Even
> if Mom does not have sufficient assets to cause estate taxes to become due
> upon her death, the estate tax language would cause the basis to get
> stepped up at her death.  There are lots of options for language that would
> have that effect, but would not really enable Mom to send any money off to
> Africa.
>
> Phil Jones
>
>
>
> Philip N. Jones
>
> Duffy Kekel LLP
>
> 900 S.W. Fifth Ave. Suite 2500
>
> Portland, OR 97204
>
> pjones at duffykekel.com
>
> (503) 226-1371 – office
>
> (503) 853-1482 – cell
>
> (503) 226-3574 - fax
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Jim Doran
> *Sent:* Tuesday, May 10, 2022 12:30 PM
> *To:* Real Property Section <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] What Kind of Trust
>
>
>
> This elderly client has some money that needs to be put into a Trust for
> her own protection.  She was preyed upon by some "African Diamond Tycoon"
> and gave away $700,000 over the past three years. I seem to recall the term
> "Spendthrift Trust" in my memory banks.  Maybe we do not want to call it
> that but we need to accomplish the same goals.  The client is willing to do
> this and has her daughter available to act as the trustee.  This could be a
> very good situation for the client.
>
> What kind of Trust to use?  I have done many Special Needs Trust and I am
> wondering if this might be a good vehicle.  The client is not receiving
> public benefits now, other than Social Security.  But that could change.
> She has about $400,000 to be put into an irrevocable trust.
>
> Any thoughts on this, and perhaps a model, would be appreciated.
>
>
>
> Jim Doran
>
>
>
> James R. Doran
>
> Attorney at Law
>
> 100 E. Pine Street -  Suite 205
>
> Bellingham, WA 98225
> (360)393-9506
>
> jim at doranlegal.com
>
> www.doranlegal.com
> <https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.doranlegal.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7C43a0f13b53ce40be8dfe08da32c2f3fc%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C637878110173981255%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=FdRcl4AygMEyzoyL63ehVGPQCow%2FJEFDSEiY%2FC43fnk%3D&reserved=0>
>
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