[WSBAPT] Disclaimer Trust Will; surviving spouse as trustee??

[Diane J. Kiepe]

No, not necessarily.  If it is a properly drafted Disclaimer Trust the spouse can be the trustee.  Key to determining if it is properly drafted is the powers the surviving spouse holds as trustee.  For example, if principal distributions can be made upon demand of the spouse, this power is to broad and, when held by surviving spouse, create 2036-2038 issues upon his/her death.  If certain powers are granted in the Trustee power section it can cause estate inclusion as well -

My guess, though, since the document calls it a Disclaimer Trust is the Trust has very standard language, income to spouse, principal based on maintenance, education, health, support – that is “good language’ from a tax perspective.

Something between the two samples above has to be reviewed in light of the power actually granted –

If you are concerned with the language you have and want a second set of eyes, I’d be happy to give my 2 cents if it’s not a rush 😉

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 Joshua Grant
Sent: Tuesday, February 28, 2023 9:49 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Disclaimer Trust Will; surviving spouse as trustee??

I am reviewing a Disclaimer Trust Will prepared by another attorney. It provides that in the event the surviving spouse disclaims property that it will go into a disclaimer trust.  It names the surviving spouse as the trustee.  The goal is to maximize the estate savings by keeping assets disclaimed out of SS’s estate.  Does the trustee of the disclaimer trust have to be someone other than the SS?

Joshua F. Grant
[cid:image001.png at 01D94B5C.11432DB0]
P. O. Box 619
Wilbur, WA 99185
509 647 5578
jgrant at advocateslg.com<mailto:jgrant at advocateslg.com>

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20230228/41793140/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 7674 bytes
Desc: image001.png
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20230228/41793140/image001.png>