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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='color:#1F497D'>Wow.<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'>This is really helpful.<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'>Thank you so much, both Tim and Kevin.<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'>The problem is that this estate is clearly in the 706 Return category, with assets in excess of $5.45M, and a death that took place less than a month ago. So, we are far from being in a situation where we are even close to being judgment proof.<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'>The bug-a-boo in all of this is the fact that, per the CPA’s advice, we have sought a valuation of the kit airplane as of the date of death, and the figure $42,000.00 has been supplied by the appraiser. Now, it appears that we could never expect to net full value for the airplane since the transfer of the airplane involves much more expensive risk than the benefit that gaining dollars from its sale would garner for the Estate. I cannot imagine that an insurance company would easily (or cheaply) provide insurance on what, in essence, was a DIY project. It is not as if the Decedent’s workplace bore a sign saying BOEING on the wall, nor did he employ the helpful quality control people that a major company would have in its employ, much less any major testing. (All we have is that the Decedent actually flew it himself, and, in fact, he flew it from the Sacramento area to the State of Washington when he moved up here about 22 years ago.) That turns the airplane into the preverbal white elephant, if you will. <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'>Now, in the background, we hear major gulping sounds coming from PR client.<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'>Thank you again for your helpful thoughts. <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'>Best Regards,<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'>Doug Bratt<o:p></o:p></span></p><p class=MsoNormal><span style='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>Timothy L. Austin<br><b>Sent:</b> Monday, October 24, 2016 6:10 PM<br><b>To:</b> WSBA Probate & Trust Listserv<br><b>Cc:</b> Kevin C. Austin<br><b>Subject:</b> Re: [WSBAPT] Charitable Donation of "Kit" Airplane<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#1F497D'>Doug,<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 ran this by my brother Kevin who is an aviation attorney, and here are his thoughts:<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'>Aviation Transaction Attorney here: <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>Instead of the Manufacturer of the Kit, the assembler of the kit (the decedent) is typically listed in the FAA files and registry, and has liability as “the manufacturer”. Because of this we typically recommend that a client cut up and bury a Kit Aircraft rather than selling it or giving it away. And they also don’t usually have adequate insurance to cover their manufacturing liability after the sale. That issue may be minimized here – depending on the current status of the estate (if it is judgment proof by now?).<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>As far as normal liability of a seller for an aircraft sold – there is less to worry about when you can dissipate the risks over time. The things the Seller did himself or had done (such as maintenance) you may be still be responsible for in a crash, and you usually have the buyer indemnify, disclaim and covenant not to sue. Eventually the buyer performs these events themselves and your liability to third parties dissipates. We encourage our clients to retain some sort of “tail” policy (for a period of time and if available) for any liability that may come back and haunt them after the sale. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>We have been involved in gifting of experimental aircraft to museums in the past – with the caveat that they not be returned to service. The museums are likely to have their own documents and processes for this – but they are not necessarily favorable to the donor.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>There are a number of other steps that could be taken to de-commission the aircraft - but all are costly versus the return benefit<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>Here is some social media regarding this discussion: <a href="https://www.reddit.com/r/aviation/comments/3qzfmn/owner_destroys_rv8_after_losing_medical_to_avoid/">https://www.reddit.com/r/aviation/comments/3qzfmn/owner_destroys_rv8_after_losing_medical_to_avoid/</a><o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>Here is the <a href="http://www.eaa.org/en/eaa/aviation-communities-and-interests/homebuilt-aircraft-and-homebuilt-aircraft-kits/next-steps-after-plane-is-built/selling-and-buying-articles/part-1-protect-yourself-the-legal-risks-of-selling-the-aircraft-you-built">EAA’s</a> take on it. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>Kevin<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>Kevin C. Austin | Aero Law Group PC<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><u><span style='color:#1F497D'><a href="mailto:austinkc@law.aero">austinkc@law.aero</a></span></u><span style='color:#1F497D'> | 425-456-1800<u><o:p></o:p></u></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>11120 NE 2nd Street - Suite 100<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>Bellevue, WA 98004 | <a href="http://www.law.aero/">www.law.aero</a><o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'>This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='color:#1F497D'><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'> <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'>Timothy L. Austin<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Betts Austin, pllc<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>PO Box 53050<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Bellevue, WA 98015-3050<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Direct Dial: (425) 450-3307<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Fax: (425) 450-3310<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'><a href="mailto:taustin@nwtaxlaw.com"><span style='color:#0563C1'>taustin@nwtaxlaw.com</span></a><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'><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'><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>From:</b> <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>Douglas Bratt<br><b>Sent:</b> Friday, October 21, 2016 4:12 PM<br><b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a><br><b>Subject:</b> [WSBAPT] Charitable Donation of "Kit" Airplane<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Hello Listmates:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>A current estate has an unusual asset – a private airplane, put together from a kit, in the 1960’s. The airplane kit company is now out of business.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>The plane was actually flown by the Decedent a number of years ago (but that is not what caused his death!) It has not been flown since he traveled from the Sacramento to this state in the airplane, those many years ago.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>It is a relic with some sort of value as a possible display item in a flight museum and the Decedent’s son wants to go the donation route.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I now wonder if there should not be some sort of a hold harmless agreement to be signed by the recipient, related to any injuries or deaths caused by flying the plane (or attempting to fly the plane), anytime in the future. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Your thoughts?? (and suggested forms, if any of you have done anything similar in the past).<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Thank you, and have a great weekend.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Regards,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Doug Bratt<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Lucida Calligraphy";color:#1F497D'>Douglas J. Bratt</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Lucida Calligraphy";color:#1F497D'>Lawyer</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal><img border=0 width=165 height=167 id="Picture_x0020_1" src="cid:image002.jpg@01D22E2F.DEF451E0" alt="Envelope scaled Terry"><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'>Office: (360) 213-2040 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> Fax: (360) 213-2030<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'>CONFIDENTIALITY NOTICE: This email message may contain confidential or privileged information. If you have received this message by mistake, please do not review, disclose, copy, or distribute the email. Instead, please notify us immediately by replying to this message or telephoning us. Thank you.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'>NOTE:</span><span style='font-size:10.0pt;font-family:"Times New Roman","serif";color:#1F497D'> </span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'>I do not use encrypted email. Messages sent to or from my office via email are not secure and may not be protected by attorney-client privilege. This email address is not monitored at all times. 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