[WSBAPT] Question about Revocable Living Trust

[michael westseattleattorney.com]

Thanks Phil

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Philip N. Jones <pjones at duffykekel.com>
Sent: Monday, February 27, 2023 11:54 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Question about Revocable Living Trust


I agree with Diane.  Having the account payable to the trust or to the estate invariably creates some friction that could result in income tax being paid by the trust or estate.  Always better to name the charity as beneficiary of the account.  Charities don’t pay income taxes.  Trusts and estates often do.  In rare situations, a trust or an estate might even end up paying income taxes in its final year.  Very rare, but it can happen.  I have seen it happen.

Phil Jones



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 <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Monday, February 27, 2023 11:45 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Question about Revocable Living Trust



100% True – unless there is very specific wording in the document which I have seen miserably attempted…..it makes so much more sense to make Qualified Plans directly payable to the organization or a CRT to avoid trust administration and potential lock ups due to litigation……….while conduit trusts for charities may still work, I can think of no case, off the top of my head on this Monday, of why I would advise my client to take that route ??



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<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of michael westseattleattorney.com
Sent: Monday, February 27, 2023 11:40 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



As to RLT and Charitable Orgs, is it true that a Charity receives more if it receives the decedent's deferred income account from the Decedent's Deferred Plan rather than having the Trustee receive the funds net of taxes and then disbursing?  Thaks Mike Atkins



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