[WSBAPT] Question about Revocable Living Trust

Mon Feb 27 12:10:17 PST 2023

Thanks, Phil, and everyone else who emailed!  These responses are incredibly helpful; now I will go back to the client with my concerns.

Best,
Candace

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Philip N. Jones
Sent: Monday, February 27, 2023 2:55 PM
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
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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 Diane J. Kiepe
Sent: Monday, February 27, 2023 11:45 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

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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