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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><font size=3 face=Calibri><span style='font-size:12.0pt;font-family:"Calibri",sans-serif'>Amanda,<o:p></o:p></span></font></p><p class=MsoNormal><font size=3 face=Calibri><span style='font-size:12.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></font></p><p class=MsoNormal><font size=3 face=Calibri><span style='font-size:12.0pt;font-family:"Calibri",sans-serif'>I’d like to make an observation: Most irrevocable decedents’ trusts funded as a result of the death of one spouse of a joint revocable living trust have more to offer than just tax savings. For example, creditor protection, SNT language, identity theft or protection of the first spouse’s assets from unscrupulous people who would take advantage of the elderly. While the surviving spouse may think she may never lose her mental faculties, that does happen to anyone who lives long enough. I look on the cost of a simple 1041 not as a nuisance, but as a (deductible) insurance premium. And she will still have the same income tax return and tax obligation even if one or both of the trusts are terminated. <o:p></o:p></span></font></p><p class=MsoNormal><font size=3 face=Calibri><span style='font-size:12.0pt;font-family:"Calibri",sans-serif'>S <o:p></o:p></span></font></p><p class=MsoNormal><font size=3 face=Calibri><span style='font-size:12.0pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></font></p><p class=MsoNormal><b><font size=2 face=Calibri><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;font-weight:bold'>From:</span></font></b><font size=2 face=Calibri><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b><span style='font-weight:bold'>On Behalf Of </span></b>amanda_wilson@olypenlawoffices.com<br><b><span style='font-weight:bold'>Sent:</span></b> Tuesday, June 09, 2015 4:09 PM<br><b><span style='font-weight:bold'>To:</span></b> WSBA Probate & Trust Listserv<br><b><span style='font-weight:bold'>Subject:</span></b> [WSBAPT] My first TEDRA??<o:p></o:p></span></font></p><p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><div id=SafeStyles1433891251><p style='margin:0in;margin-bottom:.0001pt'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Client asked me to review A/B Trust. It has been meticulously administered since her husband's death a few years ago and the accountings are all in order.<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>However, the combined estate is around $1 million.<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>My client and her late spouse had two children together, who are the heirs under the decedent's trust and the survivor's trust. My client has no intention of changing the beneficiaries.<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>My client is tired of managing two trusts and paying the CPA at tax time each year, I do not think an estate tax would be owed on the combined estate. The two adult children have good relationships with their mother and would be willing to to sign things that benefit the mom....<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Can my client and the kids all sign affidavits agreeing to the termination of the decedent's trust? Is a TEDRA action necessary? What would we need to do to appease (or not anger) the IRS since the decedents Trust is "registered" and has an EIN already?<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Amanda Wilson<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><strong><b><font size=4 face="Monotype Corsiva"><span style='font-size:14.0pt;font-family:"Monotype Corsiva"'>Amanda M. Wilson, esq.</span></font></b></strong><o:p></o:p></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><strong><b><font size=4 face="Monotype Corsiva"><span style='font-size:14.0pt;font-family:"Monotype Corsiva"'> </span></font></b></strong><o:p></o:p></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Olympic Peninsula Law Offices, LLC<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>P.O. Box 115<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Port Townsend, WA 98368<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'> <o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>(360)437-4172 office<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>(206)331-7851 cell phone<o:p></o:p></span></font></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><font size=2 face=Arial><span style='font-size:10.0pt;font-family:"Arial",sans-serif'> </span></font><o:p></o:p></p><p style='margin:0in;margin-bottom:.0001pt;word-wrap: break-word'><em><i><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>"Your words are the greatest power you have. The words you choose and their use establish the life you experience."</span></font></i></em><i><span style='font-style:italic'><br><strong><b><font face="Times New Roman">-Sonia Croquette</font></b></strong><em><i><font face="Times New Roman"> </font></i></em></span></i><o:p></o:p></p></div></div></body></html>