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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'>Bo, what does the trust document say?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>If such a loan was not permitted under the document or under statute, you could bring a breach of fiduciary duty lawsuit, assuming that the actual damages would make it worthwhile.<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><i><span style='font-family:Andalus;color:black;border:none windowtext 1.0pt;padding:0in'>Eden Rubenstein Toner</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black;border:none windowtext 1.0pt;padding:0in'><o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:10.0pt;font-family:Andalus;color:black;border:none windowtext 1.0pt;padding:0in'>Attorney at Law</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black;border:none windowtext 1.0pt;padding:0in'><o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:9.0pt;font-family:Andalus;color:black;border:none windowtext 1.0pt;padding:0in'>1600-B SW Dash Point Road, #163</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black;border:none windowtext 1.0pt;padding:0in'><o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:9.0pt;font-family:Andalus;color:black;border:none windowtext 1.0pt;padding:0in'>Federal Way, WA 98023</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black;border:none windowtext 1.0pt;padding:0in'><o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:9.0pt;font-family:Andalus;color:black;border:none windowtext 1.0pt;padding:0in'>phone 206-953-4485</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black;border:none windowtext 1.0pt;padding:0in'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:Andalus;color:black;border:none windowtext 1.0pt;padding:0in'> IMPORTANT: This e-mail message (and any attachments accompanying it) is intended to be confidential, only for the use of the intended recipient(s). If you are not the intended recipient, or if this message has been addressed to you in error, please notify me by reply e-mail, and then destroy all copies of the message and its attachments, if any. Your cooperation is greatly appreciated. My email is not encrypted; if you have sensitive information to transmit, please contact me before sending.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black;border:none windowtext 1.0pt;padding:0in'><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'><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: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>Boaz Weintraub<br><b>Sent:</b> Wednesday, January 18, 2017 2:29 PM<br><b>To:</b> WSBA Probate & Trust Listserv<br><b>Subject:</b> [WSBAPT] Trustee Powers To Loan Trust Principal to Themselves as Beneficiary<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal>Dear Listmates: <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>During marriage, a spouse acting as sole trustee of her father's testamentary (credit shelter) trust loaned herself and husband trust substantial monies at a fair market interest rate for a 4 year term. The spouse/trustee is also a beneficiary of the trust. The only other beneficiary (the mother) is incapacitated, and the spouse has power of attorney over her financial matters. <o:p></o:p></p></div><p class=MsoNormal><br clear=all><o:p></o:p></p><div><p class=MsoNormal><span style='font-family:"Lucida Sans Unicode","sans-serif";color:black'>RCW 11.98.070 describes the powers of a trustee. Subsection (13) states in part ...."<b>except that no trustee who is a beneficiary of a trust may participate in decisions regarding loans to such beneficiary from the trust and then only to the extent of the loan..</b>."</span><o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>The issue is whether the spouse was prevented from loaning herself and her husband the trust monies under this or any other applicable statute or Wa. law. If not, what would be the remedy/legal consequence? <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Thank you in advance for any input. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>-- <o:p></o:p></p></div><div><div><div><div><p class=MsoNormal><b><span style='font-size:10.0pt;color:black;letter-spacing:.75pt'>Boaz "Bo" Weintraub</span></b><span style='font-size:10.0pt;color:black'> </span><span style='font-size:9.5pt;letter-spacing:.75pt'> | JD, LL.M. </span><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p style='margin:0in;margin-bottom:.0001pt'><span style='font-size:9.5pt;letter-spacing:.75pt'>Weintraub Law Office, PLLC </span><span style='font-size:9.5pt'><o:p></o:p></span></p><p style='margin:0in;margin-bottom:.0001pt'><span style='font-size:10.0pt;color:gray;letter-spacing:.75pt'>T</span><span style='font-size:10.0pt;color:black;letter-spacing:.75pt'> </span><u><span style='font-size:9.5pt'><a href="tel:%28425%29%20374-4045" target="_blank"><span style='color:#1155CC'>(425) 374-4045</span></a></span></u><span style='font-size:9.5pt'> | </span><span style='font-size:10.0pt;color:gray;letter-spacing:.75pt'>F</span><span style='font-size:10.0pt;color:black;letter-spacing:.75pt'> </span><u><span style='font-size:9.5pt'><a href="tel:%28425%29%20274-7019" target="_blank"><span style='color:#1155CC'>(425) 274-7019</span></a></span></u><span style='font-size:9.5pt'> <o:p></o:p></span></p><p style='margin:0in;margin-bottom:.0001pt'><span style='font-size:9.5pt'><a href="http://www.weintraub-law.com/" target="_blank"><span style='color:#1155CC;letter-spacing:.75pt'>www.weintraub-law.com</span></a><span style='color:black;letter-spacing:.75pt'> | </span><a href="mailto:bw@weintraub-law.com" target="_blank"><span style='color:#1155CC;letter-spacing:.75pt'>bw@weintraub-law.com</span></a><o:p></o:p></span></p><p style='margin:0in;margin-bottom:.0001pt'><span style='font-size:10.0pt;color:black;letter-spacing:.75pt'>Bellevue Office: 14205 S.E. 36th Street, Suite 100, Bellevue, WA 98006 </span><span style='font-size:9.5pt'><o:p></o:p></span></p><p style='margin:0in;margin-bottom:.0001pt'><span style='font-size:10.0pt;color:black;letter-spacing:.75pt'>Bothell Office: </span><span style='font-size:10.0pt'>19125 Northcreek Parkway, Suite 120, Bothell, Washington 98011</span><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.5pt'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>IMPORTANT/CONFIDENTIAL: This e-mail and any attachments may contain confidential information protected by the attorney-client privilege or other privileges, and intended for use only by the intended recipient(s). If you have received this e-mail in error, please do not read, reproduce or distribute the contents, but rather, please immediately notify the sender, delete the e-mail and destroy all copies of the e-mail and any attachments. Unless otherwise expressly stated herein, any advice contained in this e-mail (including any attachments) is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.</span><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Thank you.</span><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p class=MsoNormal><o:p> </o:p></p></div></div></div></div></div></div></body></html>