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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Listmates-I am drafting an EP where a testamentary QTIP trust will likely be funded with several million $$ so I want to make extra sure I get it right. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>I noticed the proposed distribution language in the WA EP Deskbook for Marital Trusts is that the trustee shall “pay to or <u>for the benefit of my spouse”</u> all income at least annually. Typically with testamentary trusts I also include language giving the PR/trustee discretion to make a distribution not just to the beneficiary but also to their a custodian, fiduciary, or person/entity furnishing health, education, support or maintenance for the beneficiary. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>My question is whether giving the trustee such discretion for the manner in making distributions is sufficient to meet the spouse’s “right to income” requirement? I see RCW 11.108.050 is a “marital deduction” savings statute and says that to the extent necessary to save the deduction, assets can’t be distributed “to a person other than the transferor’s spouse”. Further, the IRS regs seem to imply their isn’t a problem if spouse would get substantially all beneficial enjoyment of the trust property (e.g. income, which would be taxable to the spouse) but it certainly isn’t clear. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>I can draft manner of making the distribution so that it is limited to the extent it doesn’t jeopardize the marital deduction but am wondering if that is necessary. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Thanks in advance for any thoughts/insight/guidance, Cy<o:p></o:p></span></p></div></body></html>