<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8">
<meta name="Generator" content="Microsoft Word 14 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:Helvetica;
panose-1:2 11 6 4 2 2 2 2 2 4;}
@font-face
{font-family:Helvetica;
panose-1:2 11 6 4 2 2 2 2 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-family:"Calibri","sans-serif";}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="blue" vlink="purple">
<div class="WordSection1">
<p class="MsoNormal"><a name="_GoBack"></a><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">David:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Safest and best bet is to split the IRA into two IRAs now (the amounts don’t have to be equal, whatever % they want to allocate to charity is the % of the overall
IRA they spin off into a new IRA). Then you will have a IRA with the child trust as beneficiary and another with the charitable institution as beneficiary. There are some “fixes” at death when you have both a charity and a trust as % IRA beneficiaries of
one IRA, but it is easiest to deal with it now. Clients can still pull equally from the IRAs. In fact, I find clients have a tendency to alter their estate plan as the IRAs grow, i.e., withdraw more out of the charity IRA as it has performed better than
anticipated and want to leave a lesser amount to the charity, and they don’t have to sign new beneficiary designations, which can get completed incorrectly, lost in transit, etc.<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" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Lyon, Weigand & Gustafson, P.S.
<br>
P.O. Box 1689 <br>
Yakima, Washington 98907 <br>
Telephone: (509) 248-7220 <br>
Facsimile: (509) 575-1883 <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D"><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">NOTICES:<o:p></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Confidentiality:
</span></b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">This e-mail transmission may contain information which is protected by attorney-client, work product and/or other privileges. If you are not the intended recipient, you
are hereby notified that any disclosure, or taking of any action in reliance on the contents, is strictly prohibited. If you have received this transmission in error, please contact us immediately and return the e-mail to us by choosing Reply (or the corresponding
function on your e-mail system) and then deleting the e-mail.<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>David Faber<br>
<b>Sent:</b> Tuesday, June 27, 2017 11:56 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] Gift of Traditional IRA to Juridical Entity<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<p class="MsoNormal">List:<o:p></o:p></p>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div>
<p class="MsoNormal">I'm trying to understand how much flexibility I can bake into a trust arrangement for a client who wishes to leave a portion of their traditional IRA to a nonprofit entity and the rest in trust to the client's child. IRC § 1.401(a)(9)-4
of course does not allow juridical entities as possible contingent beneficiaries of a qualified retirement plan account, but am I right in assuming that provided the client splits the QRP into separate tranches at the time of their death, any portion that
is directed to an individual beneficiary (with proper contingent beneficiary language) would be able to be stretched irrespective of the gift to the juridical entity? Also, would you advise I have the beneficiary designation deal with the carving up of the
QRP directly or should I have the trustee tackle that issue within the confines of trust instrument? I am leaning toward the former, but understand that there are sometimes pitfalls around plan administrators properly addressing the renaming and segregation
of accounts.<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><br clear="all">
<o:p></o:p></p>
<div>
<div>
<div>
<div>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Best,<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">David J. Faber<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Faber Feinson PLLC<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">210 Polk Street, Suite 1<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Port Townsend, WA 98368<br>
(360) 379-4110<o:p></o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"Helvetica","sans-serif"">*** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL. This communication may contain privileged or other confidential information. If you are not the intended recipient,
or believe that you have received this communication in error, please do not print, copy, retransmit, disseminate, or otherwise use the information. Also, please indicate to the sender that you have received this communication in error, and destroy the copy
you received.***</span><span style="font-family:"Arial","sans-serif""><o:p></o:p></span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body>
</html>