[WSBAPT] Trust Administration/Tax Refund Question

Tue Apr 18 14:20:17 PDT 2023

To clarify - it is IRS Form 1310 that she sent me with questions.

Also - this is about getting a REFUND, not owing anything extra.

I see it as the fact that this was an income tax refund, taxed from his
regular income (not the Trust) that the refund would not be a Trust asset.
Right?

As such, she is not going to be the beneficiary of such a refund since she
has no intestate connection to the Decedent/Trustor.

*Brent Williams-Ruth* (pronouns: he/him)
*Attorney-At-Law*

*Law Offices of Brent Williams-Ruth, **a division of BWR Consulting, PLLC*

*Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*

***EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to
the following address: **PO BOX 3319; Federal Way, WA 98063 *

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail <Brent at Williams-RuthLaw.com> / website
<http://www.williams-ruthlaw.com/> / facebook
<http://www.facebook.com/bwrlaw> /

On Tue, Apr 18, 2023 at 1:22 PM Doehne, Jen <jdoehne at eisenhowerlaw.com>
wrote:

> Hi Brent,
>
> I would be curious as to the origin of the “IRS” form.
>
> My understanding is the IRS just wants a contact person, whether appointed
> by court or not.
>
> https://www.irs.gov/taxtopics/tc356 Notice the first sentence: “…or
> anyone else in charge of the decedent’s property.” See also
> https://www.irs.gov/publications/p559 (search “respon”, the 3rd entry of
> Pub 559 echoes topic 356 “…or anyone who is in charge of the decedent’s
> property.”)
>
>
>
> My takeaway is that your client as trustee would be responsible for filing
> and paying any required liabilities out of the decedent’s Trust assets.
> (And that personal liability would end if the decedent’s assets are
> depleted.)
>
>
>
> Would love to hear other thoughts because this does come up for me on
> occasion but I have never seen an IRS form that requires me to open a
> probate.
>
>
>
> Best,
>
> Jen
>
>
>
> Jen Doehne, Attorney
> Pronouns she/her/hers
>
> 909 A Street, Suite 600 | Tacoma, WA 98402
> phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Brent Williams-Ruth
> *Sent:* Tuesday, April 18, 2023 12:12 PM
> *To:* WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
> *Subject:* [WSBAPT] Trust Administration/Tax Refund Question
>
>
>
> Greetings List Members -
>
>
>
> I have been assisting a Successor Trustee with the administration of a
> Trust upon the death of the Trustor.  The Successor Trustee has NO BLOOD
> RELATION to the Trustor, but was like a family member.  We all know the
> type.
>
>
>
> Here is the issue - there is no Pour-Over Will.
>
>
>
> The Decedent Trustor had done an amazing job of leaving every single asset
> into his Trust. We filed the non-probate Notice to creditors, the successor
> trustee has successfully closed all accounts (phone, cable, utilities,
> etc.) - all that is left would be to claim an income tax refund.
>
>
>
> I have been shown an IRS form that asks three questions - is there a will;
> has the will be probated/are you the PR; and if the answer to the first two
> are no, will you pay out the refund according to law in the state where he
> died.
>
>
>
> Since there is no Pour-Over Will.....if the Trustee claims the money, she
> will need to locate the family members (who were - for all intents and
> purposes - disinherited by their father) and spread the income tax refund
> to them because this is a tax refund for him, personally, not for the Trust
> that had been set up using his Social Security number.
>
>
>
> For many reasons, this is not a path the Trustee would like to go down but
> I am not seeing an alternative.
>
>
>
> Appreciate any tips or suggestions.
>
>
> Thank you!
>
> Brent
>
>
>
>
>
>
>
> *Brent Williams-Ruth* (pronouns: he/him)
>
> *Attorney-At-Law*
>
> *Law Offices of Brent Williams-Ruth, **a division of BWR Consulting, PLLC*
>
> *Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*
>
> ***EFFECTIVE IMMEDIATELY**** All mail sent through the USPS should be
> sent to the following address: PO BOX 3319; Federal Way, WA 98063 *
>
> Office/Scheduling Phone: (253) 285-7751
>
> Direct: (253) 285-7453
>
> e-mail <Brent at Williams-RuthLaw.com> / website
> <http://www.williams-ruthlaw.com/> / facebook
> <http://www.facebook.com/bwrlaw> /
>
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