[WSBAPT] Death-bed gifting question

[Mark Anderson]

Dear All:

One way to handle this would perhaps be to go ahead and distribute the funds according to the terms of the Will and IRA agreements as appropriate but then simply urge the recipients of those funds to redistribute the monies as gifts.  To this end, a TEDRA (or similar) agreement could be used to equitably allocate the distribution of the funds to achieve what the Grantor apparently intended.  Each recipient could then receive a tax benefit by gifting at least a portion of what they received.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Anna Van Pelt
Sent: Monday, July 22, 2024 10:00 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Death-bed gifting question

Good morning,

I'm hoping one of you has encountered this and come up with a better solution.

Terminally-ill grantor instructed her POA to donate money from her IRA to a long list of relatives and charities. As you know, it takes time to free up IRA funds. Funds were finally freed, POA wrote the checks, and the grantor died the next day. Checks were not distributed before her passing since POA still had possession of the checks, so they also weren't cashed before her passing. There were also two donations to charities for which checks were not yet written. POA is now the PR, and would like those donations/gifts to happen, and preferably to be given beneficial tax treatment. I know we can use a TEDRA agreement (assuming all the beneficiaries agree, which is fortunately likely) to include the last-minute gifts and donations, but I don't see a way to make that tax-advantageous since they aren't in the will and didn't happen before her death.

Am I missing any creative solutions?

Thanks,
Anna

Van Pelt Law
(206) 635-7250
www.vanpeltlegal.com<http://www.vanpeltlegal.com/>
Pronouns: She/Her

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