[WSBAPT] interim trust distribution

Wed May 18 12:57:51 PDT 2022

Spot on! It's just not worth it.

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 Philip N. Jones
Sent: Tuesday, May 17, 2022 8:01 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] interim trust distribution

A "release" signed by a beneficiary does not affect the ability of the WADOR to collect tax from the fiduciary, since the WADOR did not sign the release.  In fact, if the trust lacks the ability to pay the tax, the WADOR may pursue the personal assets of the fiduciary under a theory known as fiduciary liability.  They can also pursue the beneficiary under a theory known as transferee liability.   I suggest that a distribution not be made.  If it is made, a very detailed release/refunding/indemnification agreement (with an attorney fees clause) should be prepared, not just a simple release.  And only if the beneficiary has deep pockets.  In other words, I vote with Amy.  But better to not make a distribution.  Danger!
Phil Jones
Portland, OR

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Lewis, Amy C.
Sent: Tuesday, May 17, 2022 3:38 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] interim trust distribution

Corporate trustees typically include language requiring beneficiaries to refund a portion of their distribution to the trust if needed to pay taxes.

Amy Lewis, Attorney
Pronouns she/her/hers
[cid:image001.png at 01D86AB6.DD18ECE0]
909 A Street, Suite 600 | Tacoma, WA 98402
phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com<https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.eisenhowerlaw.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7C292918d0e15b48e2ca4508da3856607b%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C637884240897790995%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000%7C%7C%7C&sdata=em7DFOxCYeW2kZY8cldPPdsRM3kF4NnNRI7tt4LjtzM%3D&reserved=0>
From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Shannon Jones
Sent: Tuesday, May 17, 2022 10:10 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] interim trust distribution

Listmates, Completing a trust administration and client trustee wants to make interim distributions to beneficiaries but we do not have WA DOR clearance letter yet. WA taxable estate and there is a potential issue with delay in funding the credit shelter trust. Is the beneficiaries' signature to a simple form "release" sufficient to insulate trustee from personal liability related to WA estate taxes? Should it be a more detailed release or TEDRA? If we just wait for the DOR letter, do I need a release or TEDRA at all? Thanks for any input - Shannon

[cid:image002.png at 01D86AB6.DD18ECE0]
Shannon R. Jones | Attorney
Campbell Barnett PLLC
Direct:  253.848.3515
Office: 253.848.3513| Fax: 253.845.4941
317 South Meridian
Puyallup, WA 98371
shannonj at campbellbarnettlaw.com<mailto:shannonj at campbellbarnettlaw.com>
campbellbarnettlaw.com<https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcampbellbarnettlaw.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7C292918d0e15b48e2ca4508da3856607b%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C637884240897790995%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000%7C%7C%7C&sdata=y06EBOap0e3kH%2BGdDk04t9C5u%2FZKtJI%2BKU8YB1moOwU%3D&reserved=0>

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