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<p class="MsoNormal"><span style="color:#1F497D">Hi John:<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 agree with what Derek recommends. There are also a couple of other options I might explore with the 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">If the testator is at all charity-minded, his will could give all amounts exceeding the state estate tax to a qualified charitable organization. Alternatively, the testator could create an irrevocable life insurance
trust and fund it with a policy sufficient to meet any estate tax liability. If he’s only marginally above the $2MM state threshold, then the amount needed to fund the ILIT may be pretty insignificant.<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">My $.02.<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 wishes,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">James<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><b><span style="color:#1F497D">James W. Spencer <o:p></o:p></span></b></p>
<p class="MsoNormal"><i><span style="color:#1F497D">Attorney at Law<o:p></o:p></span></i></p>
<p class="MsoNormal"><b><span style="color:#323E4F">Brothers Henderson Dussault, P.S.<o:p></o:p></span></b></p>
<p class="MsoNormal" style="background:white"><span style="color:#385623">2722 Eastlake Ave E, Ste. 200<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="color:#385623">Seattle, Washington 98102<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="color:#385623">P: (206) 324-4300 x106
<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="color:#385623">f: (206) 324-3106<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="color:#385623">e-mail:
<a href="mailto:jamess@bhdlaw.com"><span style="color:#385623">jamess@bhdlaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#385623"><a href="http://www.bhdlaw.com/"><span style="color:#385623">http://www.bhdlaw.com/</span></a>
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><img border="0" width="183" height="60" id="Picture_x0020_1" src="cid:image001.jpg@01D30F6B.854930C0" alt="cid:image001.jpg@01D22897.26241F80"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<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"">
<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>Derek Johnson<br>
<b>Sent:</b> Thursday, August 03, 2017 1:51 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> Re: [WSBAPT] Estate Planning for Single Person (Might Involve Estate Tax)<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hi John,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Unfortunately, there are not a lot of options for single people wishing to avoid paying estate taxes without a living trust, except simply having a smaller estate. In your hypothetical, the individual could make yearly gifts directly to
his potential beneficiaries equal to or less than the annual exclusion ($14,000 each). This would work to bring down his total estate value.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If he has any business or real estate interests, he could start to give small portions of those interests to the beneficiaries to bring his estate down as well. Again, if he has real estate or some property of value, he could contribute
it to an LLC and then gift small portions of the LLC ownership to the potential beneficiaries and utilize the marketability and minority ownership discounts to give over more value, quicker.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">At the end of the day the easiest thing to do would be to create a simple living trust with Crumey powers and 5 or 5 clause. It would be pretty simple since it would be there essentially to sit and gather money, there would be very little
income to deal with and almost no need to maintain it. He could gift $14,000/year per person to the trust and have it distribute upon his death.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hope that helps. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Palatino Linotype","serif";color:navy">Derek Johnson, J.D.</span><span style="font-size:14.0pt;color:navy"><br>
</span><span style="font-family:"Palatino Linotype","serif";color:navy">Gravis Law, PLLC</span><span style="font-size:14.0pt;color:navy"><br>
</span><span style="font-family:"Palatino Linotype","serif";color:navy">710 George Washington Way, Suite A</span><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Palatino Linotype","serif";color:navy">PO Box 840</span><span style="font-size:14.0pt;color:navy"><br>
</span><span style="font-family:"Palatino Linotype","serif";color:navy">Richland, WA 99352</span><span style="font-size:14.0pt;color:navy"><br>
</span><span style="font-family:"Palatino Linotype","serif";color:navy">Tel: 509.380.9102</span><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Palatino Linotype","serif";color:navy"><a href="mailto:derek@gravislaw.com">derek@gravislaw.com</a><br>
</span><span style="font-size:12.0pt;color:black"><br>
</span><span style="font-size:10.0pt;color:navy">Any U.S. federal tax advice contained in this communication (including any attachments, enclosures, or other materials) is not intended or written to be used, and cannot be used, by any person for the purpose
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Electronic Communications Privacy Act, 18 USC secs. 2510-2521. Privileged/confidential information may be contained in this message and/or attachments, and may be subject to legal privilege. Access to this e-mail by anyone other than the intended is unauthorized.
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><a name="_MailEndCompose"></a><o:p> </o:p></p>
<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>John Yip<br>
<b>Sent:</b> Saturday, July 29, 2017 12:55 PM<br>
<b>To:</b> <a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a>;
<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBAPT] Estate Planning for Single Person (Might Involve Estate Tax)<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">Hello,<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">Here is the hypothetical situation: Single person wants estate planning, and his estate may be slightly over the Washington State estate tax threshold. He wants to leave his estate to multiple beneficiaries.
However, he does not want an inter vivos trust.<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">In that case, would a Will with disclaimer trust provisions make sense? Disclaimer trusts rely upon the Marital Deduction and the QTIP exceptions, which are unavailable to single persons, correct? Also, wouldn't
it be messy to set up a disclaimer trust when there are multiple beneficiaries, as some might not be willing to disclaim?<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">If a Will with disclaimer trust provisions would not make sense for the above hypothetical, what are some alternatives I could use for the single person's estate planning other than to set up an inter vivos
trust?<o:p></o:p></p>
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<p class="MsoNormal">Thanks,<o:p></o:p></p>
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<p class="MsoNormal">John<o:p></o:p></p>
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