[WSBAPT] bypass trust as contingent beneficiary

[Jenna Brozik]

Thank you Diane.  Appreciate your feedback.

Jenna Brozik
Managing Attorney
PRINZ & BROZIK PLLC
445 S. Grand Avenue
Pullman, WA 99163
509-338-0908 Telephone
509-338-3527 Facsimile

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane Kiepe
Sent: Monday, July 27, 2026 10:39 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] bypass trust as contingent beneficiary

In my opinion this is not necessarily the best approach from a tax planning and estate administration perspective, but it is one way to consider.  I'd be happy to speak with you about why, as it's a bit complicated.  It would need to be after traditional business hours.  Generally though, one conversation you might want to have is whether it makes sense to use all or some of the WA estate tax exemption by naming a non-spouse (but child or children) as a beneficiary for a portion of retirement plans.  Another discussion, depending on their age, is to have them visit with their advisor about a ROTH conversion for some of their retirement plans and then use the ROTH DOLLARS.  Lastly, for now, given an estate of this size, they need to consider lifetime gifting and possibly life insurance.  I am not an advisor, but I share an office with my son who is a Chartered Financial Advisor and CPA. In my 22+ years, I have worked so closely with advisors that you learn a few tricks of the trade to consider.

Forgive me if I overanswered; perhaps you only needed the language commented on.  To that end, DO NOT name a living trust.  Bypass or Family trust is acceptable, but then you need to ensure you have appropriate payout language so the surviving spouse has some flexibility.  Lastly, I would add a third selection of individuals so the surviving spouse could consider a double disclaimer.  Disclaim as spouse and then as Trustee if it makes sense.



Diane Kiepe
Kiepe Estate and Probate, PLLC
diane at kiepelaw.com<mailto:diane at kiepelaw.com>
200 N. Mullan Rd., Suite 203
Spokane Valley, WA  99206
509-808-2087
Confidentiality Notice: This page and any accompanying documents contain information that is confidential, privileged, or exempt from disclosure under applicable law and is intended for the exclusive use of the addressee. This information is private and protected by law. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or use of the contents of this information in any manner is strictly prohibited.


On Mon, Jul 27, 2026 at 10:18 AM Jenna Brozik <Jenna at prinzandbrozik.com<mailto:Jenna at prinzandbrozik.com>> wrote:
Hello list mates,

My clients have executed a joint Living Trust.  They are a married couple.  Most if not all of their assets are in their retirement accounts, approximately 6-7 million.

In the Living Trust, there is an option to disclaim assets for the surviving spouse when the first spouse passes away. Most likely the surviving spouse will disclaim part of the estate to try to avoid estate taxes.

In this situation, is the best option that they should name each other as primary beneficiaries on their retirement account first, and then name “The Decedent’s Trust of the ______Living Trust” or “Bypass trust of the ____Living Trust” as the contingent beneficiary?  Or should it be their Living Trust as contingent beneficiary? If the surviving spouse disclaims the retirement, it will go to the contingent beneficiary.

Thanks,

Jenna Brozik
Managing Attorney
PRINZ & BROZIK PLLC
445 S. Grand Avenue
Pullman, WA 99163
509-338-0908 Telephone
509-338-3527 Facsimile

***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
_______________________________________________
WSBAPT mailing list
WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbapt
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20260729/88786f42/attachment.html>