[WSBAPT] Trust Tax Question

[Brent Williams-Ruth]

Greetings Listmates -

I am reviewing a Trust where the Trustor is a US Citizen and their spouse
is not.

As I was refreshing my understanding of the Court and Control Tests under
301.7701-7, I think there may be an issue.

The regulation talks about the ability of the US Trustee (one bank has been
named as Co-Trustee with Spouse on the death of the Trustor) and the terms
of the Trust state that they must act in concert if there are only two of
them.

Am I reading this correctly that being forced into a stalemate DOES NOT
give the US Trustee the ability to make all substantial decisions of the
Trust? The regulation specifically says that no one can have a veto
power.....wouldn't failure to agree constitute a veto?

When I draft Trusts that have this fact pattern, I usually just name two US
based Trustees (bank and one of the local fiduciary companies) and then
have the surviving spouse.

Am I being too literal in my own drafting?

*Brent Williams-Ruth* (pronouns: he/him)
*Attorney-At-Law*

*Law Offices of Brent Williams-Ruth, **a division of BWR Consulting, PLLC*

*Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*

*Mailing Address: **PO BOX 3319; Federal Way, WA 98063 *

Office/Scheduling Phone: (253) 285-7751

For All Meetings & Scheduling: info at williams-ruthlaw.com

e-mail <Brent at Williams-RuthLaw.com> / website
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