[WSBAPT] Question about Revocable Living Trust

Mon Feb 27 11:13:26 PST 2023

As to cash gifts, you are correct that a letter of instruction won't work.  What I have done in a couple cases is one of the following:

1.         Leave a specific bequest of residuary to charitable organizations selected by the Successor Trustee (or in my case PR), who has complete discretion subject to all gifts being made only to 501(c)(3) organizations.  Then deduction is granted.

2.         Had 2 different clients set up donor advised funds, to be pass through entities, funded at death, with their initial list of charities and to work with the community organization as changes were desired - the foundation doesn't charge, I do and for one of my  clients in particular, this has proved to be money and time saving.

Good luck.

Diane J. Kiepe

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Douglas Eden
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Spokane, WA  99201
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Stuart Scarff
Sent: Monday, February 27, 2023 11:07 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Question about Revocable Living Trust

I have had similar requests and advised against the concept. Because trusts need not comply with the Statute of Wills, I wonder if referencing the list of beneficiaries and assets/Letter of Instruction in the Trust and attaching it as a schedule/exhibit to the Trust makes a difference?

Stuart Scarff, Esq.
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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 Heather de Vrieze
Sent: Monday, February 27, 2023 10:47 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Question about Revocable Living Trust

Candace,

I'm interested to see if anyone has a contrary opinion, as I have had similar requests over the years, and have always advised clients that this is not a workable solution.

Heather

Heather S. de Vrieze
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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 Candace Wilkerson
Sent: Monday, February 27, 2023 10:32 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Question about Revocable Living Trust

Hi Listmates,

I'm curious how to deal with this one.  We have a client who wants to leave their trust assets (not just small items of personal property, but financial accounts, etc.) strictly according to a separate Letter of Instructions.  This includes both specific gifts and the residuary trust estate.  Most, if not all, of these beneficiaries will be charitable organizations.

I have told the client that I think the distributions will need to be laid out specifically in the trust language itself, because a separate writing probably will not be legally binding.  I've also told them that, of course, TOD accounts can be designated for a specific charitable beneficiary and not transferred into the trust itself.  But the client wants the separate Letter of Instructions because it's more flexible than changing the terms of the trust when they want to add or delete a charitable beneficiary.

Am I incorrect in believing that such a separate writing will not be considered legally binding?  Or is it enough to say in the trust that, after the Settlor's death, "the trust estate will be distributed according to the Letter of Instructions dated ____ addressed to ______"?

Thanks for your thoughts.

Best,
Candace Wilkerson

*Candace is available to respond to emails and phone calls between the hours of 7:00 a.m. and 3:00 p.m.  If you have an urgent matter outside that time period, please call our office at the number below.

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