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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>What about naming the spouse as the primary beneficiary for the life insurance, the credit shelter trust as the secondary beneficiary and the children’s trust as third beneficiary (there are two young adult children)? If survivor needs the life insurance funds at the death of the first spouse, they could take them outright, but if not, he or she could disclaim to the credit shelter trust. Any problem with that scenario? I’d like to provide flexibility for the surviving spouse. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>John Creahan<br><b>Sent:</b> Monday, March 02, 2015 10:59 AM<br><b>To:</b> WSBA Probate & Trust Listserv<br><b>Subject:</b> Re: [WSBAPT] Life insurance trust<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#595959'>I agree. I don’t see a need for a life insurance trust. A testamentary trust could be used to minimize the survivor’s estate and, if necessary, preserve assets for other beneficiaries.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Tw Cen MT","sans-serif";color:#595959'>John Creahan</span><span style='font-family:"Tw Cen MT","sans-serif";color:#595959'><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-family:"Tw Cen MT","sans-serif";color:#595959'>206-621-5848<br><a href="http://www.cairn-law.com/"><span style='color:#595959'>www.cairn-law.com</span></a></span><span style='font-family:"Tw Cen MT","sans-serif";color:#4F6228'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#595959'><o:p> </o:p></span></p></div><p class=MsoNormal><span style='color:#595959'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Heather deVrieze<br><b>Sent:</b> Monday, March 2, 2015 8:44 AM<br><b>To:</b> WSBA Probate & Trust Listserv<br><b>Subject:</b> Re: [WSBAPT] Life insurance trust<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>It sounds to me like a credit shelter trust would be in order. Can be established in the Will, go into effect in the event of non-simultaneous death, and the Trust, if spouse should survive can be the beneficiary of the life insurance, plus whatever other assets spouse might disclaim to save taxes on survivor’s death. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Heather<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:16.0pt;font-family:"Vladimir Script";color:#1F497D'>Heather S. de Vrieze</span><b><span style='font-size:16.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><br></span></b><i><span style='font-size:11.0pt;font-family:"Garamond","serif";color:#1F497D'>Attorney-at-Law<o:p></o:p></span></i></p><p class=MsoNormal><i><span style='font-size:11.0pt;font-family:"Garamond","serif";color:#1F497D'><img border=0 width=264 height=147 id="_x0000_i1025" src="cid:image001.jpg@01D054DA.F5D67260" alt="cid:image001.jpg@01D013C2.30F35160"></span></i><i><span style='font-family:"Garamond","serif";color:#1F497D'><o:p></o:p></span></i></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>3909 California Avenue SW<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>Seattle, WA 98116-3705 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>(206)938-5500 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><a href="mailto:heatherd@westseattlelaw.com"><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>heatherd@westseattlelaw.com</span></a></span><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><a href="http://www.westseattlelaw.com/"><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'>www.westseattlelaw.com</span></a></span><span style='font-size:10.0pt;font-family:Nyala;color:#44524E'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:Nyala;color:#44524E'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#002E8A'>Click here to connect with de Vrieze | Carney on Facebook: </span></b><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> </span></b><a href="https://www.facebook.com/DeVriezeCarney"><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";text-decoration:none'><img border=0 width=100 height=30 id="Picture_x0020_1" src="cid:image002.png@01D054DA.F5D67260" alt="FB Logo"></span></b></a><span style='font-size:11.0pt;font-family:Nyala;color:#44524E'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:Nyala;color:#44524E'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:8.0pt;font-family:"Calibri","sans-serif";color:#A6A6A6'>CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally privileged and/or confidential information. If you have received this e-mail in error, please notify the sender immediately and delete all copies of this e-mail message and any attachment.</span><span style='font-size:16.0pt;font-family:"Cambria","serif";color:blue'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Paul Grant<br><b>Sent:</b> Sunday, March 01, 2015 8:51 AM<br><b>To:</b> WSBA Probate & Trust Listserv<br><b>Subject:</b> Re: [WSBAPT] Life insurance trust<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>If one spouse dies then the insurance proceeds would put more than $2m into the hands of the surviving spouse leaving the surviving spouse with a potential estate tax in WA.<o:p></o:p></p></div><div><p class=MsoNormal><br clear=all><o:p></o:p></p><div><div><p class=MsoNormal><br>Paul H. Grant - JD, LL.M<br><br>Planning with Purpose, Inc<br>Lynnwood, WA 98036<br>425-939-9948<br><a href="http://www.planningwithpurposeinc.com" target="_blank">www.planningwithpurposeinc.com</a><br><br>Estate Planning. Business Planning. Wealth Succession.<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>On Sat, Feb 28, 2015 at 1:42 PM, John Creahan <<a href="mailto:john@cairn-law.com" target="_blank">john@cairn-law.com</a>> wrote:<o:p></o:p></p><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:6.0pt'><span style='color:#595959'>Lovie,</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:6.0pt'><span style='color:#595959'>I may be missing something, but I don’t understand why your clients might need an ILIT from the information you provided. What issue would the ILIT solve?</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:6.0pt'><span style='color:#595959'>Thanks,</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:6.0pt'><span style='color:#595959'>John</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='color:#595959'> </span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:14.0pt;font-family:"Tw Cen MT","sans-serif";color:#595959'>John Creahan</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'><span style='font-family:"Tw Cen MT","sans-serif";color:#595959'><a href="tel:206-621-5848" target="_blank">206-621-5848</a><br></span><a href="http://www.cairn-law.com/" target="_blank"><span style='font-family:"Tw Cen MT","sans-serif";color:#595959'>www.cairn-law.com</span></a><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='color:#595959'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='color:#595959'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a> [mailto:<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Lovie Bernardi<br><b>Sent:</b> Friday, February 27, 2015 11:29 AM<br><b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a><br><b>Subject:</b> [WSBAPT] Life insurance trust<o:p></o:p></p></div></div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Dear listmates,<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Clients are a married couple seeking an estate plan. Their combined gross estate, excluding life insurance, is about $1.5 million in community property. However, husband owns a $500,000 whole life insurance policy naming the wife and two term policies totaling $1 million, also naming wife. Wife has a $750,000 term policy, naming husband. All policies were paid for with community funds. It occurred to me that a life insurance trust would be worth looking at to keep these funds from being included in the gross estate of both. Because I have never written a life insurance trust, I’ve spent a couple of days researching the issues and have gleaned the following: (1)In order to avoid both spouses from having retained an interest in the policy, the policy cannot be deemed to be community property. Therefore, a separate property agreement will be necessary for both the policy and any funds that are used to pay the premiums. (2)Practitioners are encouraged in the Washington Life Insurance Trust Deskbook to avoid a spouse as a beneficiary of a life insurance trust if at all possible. (3)If the policy or policies are moved to the trust, and the client dies within three years, it will still be counted in the decedent’s estate. Clients, prior to meeting with me, were considering dropping the two term policies on the husband’s life. They will be meeting soon with their agent.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Has anyone written a life insurance trust? Is the scenario described a situation that calls for one? Are there alternatives that would be better to pursue? Thanks in advance for your input.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Lovie Bernardi</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Attorney at Law</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Seligmann & Flaherty, PLLC</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>216 First AVE S, #450</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Seattle, WA 98104</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><a href="tel:%28206%29%20682-2616" target="_blank">(206) 682-2616</a></span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-family:"Arial","sans-serif"'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><a href="mailto:joni@sbfirm.com" target="_blank"><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>lovie@sbfirm.com</span></a><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><a href="http://sbfirm.com/" target="_blank"><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>http://sbfirm.com</span></a><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-family:"Arial","sans-serif"'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div></div></div></div><p class=MsoNormal><br>_______________________________________________<br>WSBAPT mailing list<br><a href="mailto:WSBAPT@lists.wsbarppt.com">WSBAPT@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbapt" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><o:p></o:p></p></blockquote></div><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>