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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">I have drafted a couple trusts for clients with similar concerns, including an incentive and a penalty. The trust provided that the beneficiary upon graduation
would receive the income from the trust as long as s/he was gainfully employed, in an internship, fellowship or similar, and upon reaching a particular age made distributions of principal equal to a multiplier (1x, 2x, 5x etc.) of W-2 (or schedule C, or equivalent)
earned income. The goal with one of them was that if child chose to be a teacher, they could still be well off, but got nothing if they were totally unemployed and not working in any way. One of them had a 1 year continuation of prior year distribution in
the event of daughter having a child and staying home to care for it, and both had medical or disability exceptions, but totally in Trustee’s control.<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">There are other ways to encourage a beneficiary to remain productive members of the community than keeping the trust a secret, which I don’t think you can really
do under current Washington law.<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>
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<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 width="264" height="147" id="_x0000_i1026" src="cid:image004.jpg@01D15297.9A33F250" 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
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">(206)938-5500
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<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">
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<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:
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<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>Kristina DeVore<br>
<b>Sent:</b> Sunday, January 17, 2016 2:56 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Secret Trust?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:black">Listmates:</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="text-indent:.25in"><span style="font-family:"Verdana",sans-serif">I have a client who would like to leave a portion of his estate to his son in trust and would like to have the trust be completely secret for a period of time after
his death. He is concerned that a large looming inheritance might create an incentive for the son to no longer be a productive member of society and instead just wait out the time period until he would receive his inheritance. I have read RCW 11.98.072 and
the waiver in that section seems to imply that a trustor can waive the requirements in 11.98.072(2) and/or (3) but does not imply that a trustor can waive the requirements of 11.98.072(1) to keep a “qualified beneficiary reasonably informed about the administration
of<span style="color:black;background:white"> </span><span style="background:white">the trust and of the material facts necessary for them to protect their interests”. However, RCW 11.97.010 states that a “trustor of a trust may…relieve the trustee from any
or all of the duties, restrictions, and liabilities which would otherwise be imposed by chapters 11.98</span>….” </span><o:p></o:p></p>
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<p class="MsoNormal" style="text-indent:.25in"><span style="font-family:"Verdana",sans-serif">Does this mean that a trustor can create a testamentary trust that is kept secret from the beneficiary after the trustor dies by waiving the duties of 11.98.072 (1)
(2) and (3)?</span><o:p></o:p></p>
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<p class="MsoNormal" style="text-indent:.25in"><span style="font-family:"Verdana",sans-serif">Thanks in advance for any thoughts you can share.</span><o:p></o:p></p>
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<p class="MsoNormal" style="text-indent:.25in"><o:p> </o:p></p>
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<p class="MsoNormal" style="text-indent:.25in"><span style="font-family:"Verdana",sans-serif">Kristina</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:#006F37">Kristina S. DeVore</span><span style="font-family:"Calibri",sans-serif;color:#006F37"> | </span><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#006F37">Attorney
& Counselor at Law</span><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#006F37">KRISTINA DEVORE LAW FIRM, p</span><span style="font-family:"Verdana",sans-serif;color:#006F37">llc</span><span style="font-family:"Calibri",sans-serif;color:#006F37"> | </span><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#006F37">300
W. 15th Street, Suite 305 </span><span style="font-family:"Calibri",sans-serif;color:#006F37">| </span><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#006F37">Vancouver, WA 98660</span><span style="font-size:10.5pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#006F37">Phone: (360) 695-0535 </span><span style="font-family:"Calibri",sans-serif;color:#006F37">| </span><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#006F37">Fax:
(360) 737-4154 </span><span style="font-family:"Calibri",sans-serif;color:#006F37">| </span><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#006F37"><a href="mailto:kristina@devore-law.com">kristina@devore-law.com</a></span><span style="font-size:9.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
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