[WSBAPT] Long list of beneficiaries

[Diane J. Kiepe]

Ann,

While it’s permissible, I typically don’t advise it except for in unusual circumstances which your facts may very well support.  The reason I don’t typically advise this is directly related to creditor protection issues (no matter how seemingly remote) as well as potential acceleration of income taxes related to qualified plans in an estate – worse case scenario is the amounts from a qualified plan are paid to the estate, and the PR, who is usually a friend or family, decides to make distributions at the end of the probate thereby trapping the plan income in the estate – anything over about $12,500 becomes taxable at the highest tax rate (I want to say 37% but I always look it up when I am visiting with a client on this issue).

I may have some sources that I can forward in the near future that share more on my summary above.

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 Ann Manley
Sent: Tuesday, October 18, 2022 3:52 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Long list of beneficiaries

Client has no kids, and wants to leave estate to 14 different people. For assets with beneficiary designations, could you list "estate" rather than all 14 people so that the assets would pass pursuant to the terms of the will?

Ann Manley, Esq.
The Manley Law Firm, P.S., Inc.
PO Box 16324
Seattle, WA 98116
(206)292-3064 / (206)292-3914 fax
www.manleyfirm.com<http://www.manleyfirm.com>

The Manley Law Firm practice areas include Bankruptcy*, Estate Planning, Auto Accidents, Civil Litigation, Construction, Commercial and Contract Law, Employment Matters, Personal injury, Small Business, Unemployment Claims, Wage Loss and Compensation claims

* The Manley Law Firm is a Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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