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<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">Transfers with retained life estate bring the property into a decedent’s taxable estate, under IRC § 2036. Thus, step-up in basis on death.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">Kate<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:13.5pt;font-family:"Cataneo BT";color:blue">Kate Szurek</span></i></b><span style="color:black">, J.D., LL.M.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><a href="mailto:kate@skagitlaw.com"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">kate@skagitlaw.com</span></a></span><span style="color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><i><span style="font-size:14.0pt;color:#1F497D">Skagit Law Group, PLLC<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><span style="color:#1F497D">P.O. Box 336 / 227 Freeway Drive, Suite B<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Mount Vernon, WA 98273<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">360.336.1000<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">360.336.6690 (fax)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><a href="http://www.skagitlaw.com/"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">http://www.skagitlaw.com</span></a></span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">
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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>Mike Winslow<br>
<b>Sent:</b> Tuesday, December 19, 2017 8:55 AM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] life estate<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">The use of the QCD, with reserved life estate, will result in loss of the step up in tax basis at Mom’s death (check with CPA to verify this). This is a significant
benefit to lose for daughter. CYA letter if you go this route.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Using a TODD avoids probate transfer of the house and retains the step up.<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">Regardless of approach, Daughter should be documenting now mom’s care needs, as the rendering of care by daughter, under circumstances which allow mom to avoid
nursing home care (saving the state and taxpayers money) can allow daughter to avoid a later Medicaid lien if mom becomes institutionalized. Jacob Menashe or others on this list could advise further about how to meet those requirements. Preplanning on this
issue will save trouble and money later.<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">Michael A. Winslow<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">1204 Cleveland Ave.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Mount Vernon, WA 98273<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Ph. 360-336-3321<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Em.
<a href="mailto:Mike@winslegal.com">Mike@winslegal.com</a><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">This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use
it for any improper purpose. Huge Disclaimer available upon request.<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">
<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>Rachel Edmiston<br>
<b>Sent:</b> Monday, December 18, 2017 4:51 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> Re: [WSBAPT] life estate<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="gmail-msonormal">The plan is for the daughter to move in with her and take care of her so that she doesn’t have to move into an assisted living facility. Since she’s in her late 60s, she’s not expecting to meet Mr. Right, but you never know. I’ve
explained to her that if she wants to sell the house later on, she would need her daughter’s consent. I also explained that her daughter’s creditors could reach the house, but again, she doesn’t think this will be a problem.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">On Mon, Dec 18, 2017 at 3:16 PM, Marcus Fry <<a href="mailto:mfry@lyon-law.com" target="_blank">mfry@lyon-law.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal">Josh,<br>
Neither will she with a transfer on death deed. <br>
Rachel,<br>
I think you need a better understanding of client's goals. What if your client wants to move into an assisted living facility? Does she have other resources to pay for it? What if she meets the man of her dreams and she wants to sell and move away with him.
With a life estate, she has no authority to direct the sale of house. Lastly, what if her daughter has creditor or marital issues, does she want the house exposed to those?<br>
Marcus Fry<br>
Lyon, Weigand & Gustafson P.S.<br>
Yakima, Wa.<br>
<br>
<br>
<br>
Sent from my Samsung Galaxy smartphone.<o:p></o:p></p>
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<br>
-------- Original message --------<br>
From: Josh Grant <<a href="mailto:jgrant@accima.com" target="_blank">jgrant@accima.com</a>>
<br>
Date:12/18/2017 2:46 PM (GMT-08:00) <br>
To: WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a>>
<br>
Cc: <br>
Subject: Re: [WSBAPT] life estate <o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Calibri",sans-serif;color:black">Clients will not start the 5 year waiting period for Medicaid eligibility as to this asset if they retain a life estate.</span><span style="font-size:14.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">
<a href="mailto:rachel.edmiston@gmail.com" target="_blank" title="rachel.edmiston@gmail.com">
Rachel Edmiston</a> <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">Sent:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black"> Sunday, December 17, 2017 1:44 PM<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">To:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">
<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank" title="wsbapt@lists.wsbarppt.com">
WSBA Probate & Trust Listserv</a> <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">Subject:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black"> [WSBAPT] life estate<o:p></o:p></span></p>
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<p class="m216170708910174992gmail-msonormal"><span style="font-family:"Calibri",sans-serif;color:black">Hi,<o:p></o:p></span></p>
<p class="m216170708910174992gmail-msonormal"><span style="font-family:"Calibri",sans-serif;color:black">One of my clients wants to give her house to her daughter and retain a life estate for herself. I thought this was done by filing a quit claim deed that
retained a life estate, but I’m having a hard time finding a sample. Do any of you have one I could use as a guide? I’d also appreciate any helpful tips you might have or warnings about pitfalls as I’ve obviously never done this before.<o:p></o:p></span></p>
<p class="m216170708910174992gmail-msonormal"><span style="font-family:"Calibri",sans-serif;color:black">Thank you,<o:p></o:p></span></p>
<p class="m216170708910174992gmail-msonormal"><span style="font-family:"Calibri",sans-serif;color:black">Rachel Edmiston<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Garamond",serif;color:#38761D;background:#F3F3F3">Rachel Edmiston,
</span><span style="font-family:"Calibri",sans-serif;color:#888888"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#888888">PO Box 13738</span><span style="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:#888888">Mill Creek, WA 98082</span><span style="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:#888888">T:
<a href="tel:(425)%20945-6333" target="_blank">425-945-6333</a></span><span style="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:#888888">F:
<a href="tel:(425)%20272-4294" target="_blank">425-272-4294</a></span><span style="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:black">_______________________________________________<br>
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<p class="MsoNormal"><span style="font-family:"Garamond",serif;color:#38761D;background:#F3F3F3">Rachel Edmiston,
</span><span style="color:#888888"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:#888888">PO Box 13738</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="color:#888888">Mill Creek, WA 98082</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="color:#888888">T: 425-945-6333</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="color:#888888">F: 425-272-4294</span><o:p></o:p></p>
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