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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Ronda—I have not used POA’s extensively, so others may have better info. But, if you don’t need to protect from estate tax, then you could use a marital trust instead of a credit shelter. Call me if you’d like to discuss.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Eden<o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:12.0pt;font-family:"Andalus","serif";color:black;border:none windowtext 1.0pt;padding:0in'>Eden Rubenstein Toner</span></i><span style='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","serif";color:black;border:none windowtext 1.0pt;padding:0in'>Attorney at Law</span></i><span style='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","serif";color:black;border:none windowtext 1.0pt;padding:0in'>1600-B SW Dash Point Road, #163</span></i><span style='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","serif";color:black;border:none windowtext 1.0pt;padding:0in'>Federal Way, WA 98023</span></i><span style='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","serif";color:black;border:none windowtext 1.0pt;padding:0in'>phone 206-953-4485</span></i><span style='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","serif";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='color:black;border:none windowtext 1.0pt;padding:0in'><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>Chris Moore<br><b>Sent:</b> Friday, December 29, 2017 10:32 AM<br><b>To:</b> WSBA Probate & Trust Listserv<br><b>Subject:</b> Re: [WSBAPT] Stepped-up basis for Credit Shelter Trust with General Power of Appt.<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#1F497D'>Thank you for this question. I am interested in any comments as well.</span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'>I am assuming your desire for a step-up in basis is for the Washington Estate Tax credit shelter trust since a CST is not needed for federal purposes due to portability. When I have tried to think of a way to get stepped up basis on a WA credit shelter trust I have always come back to the premise that in order to obtain a step-up the assets must pass through the estate of the decedent. However, for WA estate tax purposes, if the assets pass through the survivor’s estate, then, you have defeated the purpose of the credit shelter trust for WA estate tax purposes. Perhaps there are ways to accomplish this, but simplicity will certainly be lost.</span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'>The only simple way I can see to resolve this problem is for the WA legislature to adopt portability.</span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>Sincerely,</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#3333FF'><br></span></b><b><span style='font-size:13.5pt;font-family:"Lucida Handwriting";color:#3333FF'>Chris J. Moore</span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>Christopher J. Moore, JD, CPA (Inactive), AEP<sup>®</sup>, EPLS*</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>Creason, Moore, Dokken & Geidl, PLLC</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>Lawyers</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>1219 Idaho Street, POB 835</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>Lewiston, Idaho 83501-0835</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>Phone: 208-743-1516; Fax: 208-746-2231</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>Website: </span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><a href="http://www.cmd-law.com/" target="_blank"><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#1155CC'>www.cmd-law.com</span></a></span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>*Certified as an Estate Planning Law Specialist by the Estate Law Specialist Board, Inc., the only estate planning certification entity approved by both the American Bar Association and the Idaho State Bar Association.</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#500050'>_______________________________________________</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#500050'><br></span><b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#17365D'>-- Note -- </span></b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#17365D'>The information contained in this e-mail transmission is confidential and may also be a legally privileged communication. This information is intended for the exclusive and private use of the addressee(s). If you are not the intended recipient, you are hereby notified that any use, disclosure, dissemination, distribution (other than to the addressee(s)), copying or taking any action because of this information is strictly prohibited. If you have received this e-mail in error, please notify the sender immediately. Thank you.</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#17365D'><br></span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";color:#17365D'>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~</span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'> </span><o:p></o:p></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> [mailto:<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Ronda Larson<br><b>Sent:</b> Thursday, December 28, 2017 4:22 PM<br><b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a><br><b>Subject:</b> [WSBAPT] Stepped-up basis for Credit Shelter Trust with General Power of Appt.<o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>Listmates,</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>I am seeking feedback from seasoned tax savvy estate planners. Clients are a blended family but do not have a taxable estate. I would like the clients to get a step up in basis on property that will be put in a testamentary credit shelter trust. My plan is to add language giving a formula testamentary general power of appointment with ordering rules and non-adverse party consent. Thus, the surviving spouse can appoint to his or her estate’s creditors (and, I plan to also include power to appoint to the trustor’s then-living descendants, unless the client says otherwise), but the power is limited to assets with the greatest appreciation (and excludes IRA/Retirement plans), and to exercise the power, the spouse must have consent of a non-adverse party. </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>In cases where there is a potentially taxable estate, I plan to add a capping rule, thus limiting the power to appoint to the fraction or percentage that doesn’t trigger estate taxes.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>Is there anything about Washington state law that I am not accounting for in this scheme? Any other thoughts you have regarding this issue? I just want to cover my bases by putting it out here for input.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>Thanks.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:20.0pt;font-family:"Brush Script MT"'>Ronda Larson</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:16.0pt;font-family:"Baskerville Old Face","serif";color:black'>Larson Law, PLLC</span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Baskerville Old Face","serif";color:#767171'>1700 Cooper Point Rd SW, Bldg A3</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Baskerville Old Face","serif";color:#767171'>Olympia WA 98502</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Baskerville Old Face","serif";color:#767171'>Ph: 360-259-3076</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Baskerville Old Face","serif"'><a href="mailto:ronda@larsonlawpllc.com">ronda@larsonlawpllc.com</a></span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Baskerville Old Face","serif"'><a href="http://www.larsonlawpllc.com/">www.larsonlawpllc.com</a> </span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><b><u><span style='color:#323232'>NOTICES</span></u></b><span style='color:#323232'>: This message, including attachments, is confidential and may contain information protected by the attorney-client privilege or work product doctrine. If you are not the addressee, any disclosure, copying, distribution, or use of the contents of this message are prohibited. If you have received this email in error, please destroy it and notify me immediately. Any tax advice contained in this message is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the internal revenue code or (2) promoting, marketing, or recommending to others any tax-related matter(s) addressed here.</span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p></div></body></html>