[WSBAPT] Trust Administration Questions

[Jordan Kostelyk]

Thank you Nick! This is very helpful.

> On 07/23/2025 1:27 PM PDT Nick Pleasants <npleasants at ohswlaw.com> wrote:
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>  
> Hi Jordan,
> 1. Trustee notification requirements - see RCW 11.98.072. With the initial notice, I would include at a minimum the trust document itself, unless there is good reason not to include the entire trust document. If the beneficiaries are asking for bank statements, etc., I would probably provide it, again unless there is good reason not to (e.g. beneficiary is only entitled to a sum-certain or specific asset, rather than a percentage of the corpus). Beneficiaries are generally entitled to an annual accounting pursuant to RCW 11.106.020, although that is modifiable by the trust instrument.
> 2. If the Trust generated income in excess of $300, then the Trust would be required to file Form 1041. If the Trust distributed the income during the fiscal year or up to 65 days after the fiscal year, the Trust can deduct that income and assign it to the Beneficiaries on Schedule K-1. The 65 day rule gives Trustees an opportunity to calculate the DNI and then distribute it so that the trust need not pay income tax at the Trust's rate, which is often higher than the Beneficiaries' individual rates. The "estate" if there is a companion probate would only be responsible to pay the tax if a 645 election is made. I would collect W9 forms from the beneficiaries of either a Trust or a probate Estate since you may be required to file a 1041 in either case.
> Circular 230 disclosure - this is not tax advice to you or anyone else reading this. Consult your own CPA. :)
> Best,
> Nick
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> 
> Nicholas Pleasants | Shareholder
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> From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Jordan Kostelyk <jordan at everlastinglegalsolutions.com>
> Sent: Wednesday, July 23, 2025 12:08 PM
> To: WSBAPT at lists.wsbarppt.com <WSBAPT at lists.wsbarppt.com>
> Subject: [WSBAPT] Trust Administration Questions
>  
> Hello all,
>  
> I have a few (probably really basic) trust administration questions as I usually do probates and am hoping to learn more about trust administration.
>  
> What documents are beneficiaries of a trust entitled to such as bank statements, and what types of receipts would it include for expenses paid from trust funds including what trustee pays themself if anything? 
>  
> If the trust generated income, the estate must pay the income tax correct, not the beneficiaries, just wondering why W9 forms are involved? 
>  
> Thank you,
> Jordan
>  
> (Ms.) Jordan D. Kostelyk, Esq.
>  
> Tel: 425-244-5196
> Email: jordan at everlastinglegalsolutions.com mailto:jordankostelykatlaw at gmail.com
> Website: https://everlastinglegalsolutions.com/ https://linkprotect.cudasvc.com/url?a=https%3a%2f%2feverlastinglegalsolutions.com%2f&c=E,1,TiPrWcCpVMSEXXl6CxPMONiexXz6GQqbjdVXQSjwmrtPtMWeuYdN9XQT6grWAqlxaxH8BeKb9urymaMVXn8df7wHYvE9Yxys6jc9zZ3aRsE,&typo=1 
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(Ms.) Jordan D. Kostelyk, Esq.
 
Tel: 425-244-5196
Email: jordan at everlastinglegalsolutions.com mailto:jordankostelykatlaw at gmail.com
Website: https://everlastinglegalsolutions.com/ 
 
This communication is confidential and may be subject to the attorney-client privilege and/or is protected by the work product doctrine. It is intended only for the individual(s) designated herein and is covered by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521.  If you are not the intended recipient, any dissemination, distribution, or copying of this communication is strictly prohibited.
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