[WSBAPT] living trust restatement or amendment

[Lewis, Amy C.]

Shannon,

                I agree that it makes sense to set up the deceased spouse's credit trust now.  I have done "late" divisions of living trusts before.  When amending the survivor's portion, we typically create a trust amendment.  However, I have seen other attorneys "restate" the Survivor's Trust with a new trust document, which seems less confusing for the client.  We are contemplating changing our practice.


Amy Lewis, Attorney
Pronouns she/her/hers
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909 A Street, Suite 600 | Tacoma, WA 98402
phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com<http://www.eisenhowerlaw.com/>
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Shannon Jones
Sent: Thursday, September 26, 2024 8:56 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] living trust restatement or amendment

Listmates, PNC wrote their own living trust. They are a retired attorney who did not practice in estate planning. PNC and spouse were Grantors and initial Trustees. Spouse died 5 years ago. The original trust provided for mandatory estate tax planning sub-trusts to be funded on spouse's death (on the first spouse's death, spouse's interest in community property "shall be transferred to a credit trust..."). Assume this is a $5-6M net estate and every asset is CP, but no assets were transferred to a credit trust on first spouse's death. Trust said either Grantor could entirely revoke or amend the trust in any way, even after first spouse died. Now, PNC wants to completely restate the trust and has again drafted their own trust document. In PNC's draft, they are now the only "Grantor" and "sole trustee." The other desired changes are to a trust for the residual heir (who is the couple's only adult child). To make PNC's changes, and since it looks like the existing living trust holds assets, shouldn't PNC instead amend the existing trust to make his changes? I also think PNC should setup the credit trust even though its been several years since the spouse died. Input appreciated - Shannon

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Shannon R. Jones | Attorney
Campbell Barnett PLLC
Direct:  253.848.3515
Office: 253.848.3513| Fax: 253.845.4941
317 South Meridian
Puyallup, WA 98371
shannonj at campbellbarnettlaw.com<mailto:shannonj at campbellbarnettlaw.com>
campbellbarnettlaw.com<https://campbellbarnettlaw.com/>


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