<div dir="ltr">I probably should have provided more:<div><br></div><div>My clients are currently receiving assets from an irrevocable trust to cover certain limited living expenses at the discretion of one client's sister. The clients are trying to make the argument that the senior property tax exemption should apply to them, because they believe themselves to be earning less than $40k a year<span style="color:rgb(34,34,34);font-family:arial,sans-serif;font-size:small;font-style:normal;font-variant-ligatures:normal;font-variant-caps:normal;font-weight:400;letter-spacing:normal;text-align:start;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0px;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline"><span> </span>in "disposable income"<span> </span></span>and they otherwise qualify for the exemption. RCW 84.39.010(6)(b) provides that "disposable income" shall have the meaning under RCW 84.36.383, subsection (5) of which provides that "disposable income" has the meaning prescribed in the IRC of "adjusted gross income" plus the other conditions described therein, all of which are immaterial to my clients. IRC 62, meanwhile, provides that the adjusted gross income shall be defined as "gross income" under IRC 61 minus certain deductions, all of which are immaterial here. Finally, IRC 61 defines "gross income" to include, under subsection (15) "income from an interest in an estate or trust."</div><div><br></div><div>This appears to be a dead-end, however, because the IRC does not provide what "income" means in the context of subsection (15). Is any distribution from a trust classified as "income" from an interest in an estate or trust, or is it constrained to such distributions which would normally qualify as "income" in the way that we would draft, say, a conduit trust, and therefore not include distributions of principal?</div></div><div class="gmail_extra"><br clear="all"><div><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div style="font-family:arial;font-size:small">Best,</div><div style="font-family:arial;font-size:small">David J. Faber</div><div style="font-family:arial;font-size:small">Faber Feinson PLLC</div><div style="font-family:arial;font-size:small">210 Polk Street, Suite 1</div><div style="font-family:arial;font-size:small">Port Townsend, WA 98368<br>(360) 379-4110</div><div style="font-family:arial;font-size:small"><br></div><div style="font-family:arial;font-size:small"><span style="font-family:Helvetica">*** 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></div></div></div></div>
<br><div class="gmail_quote">On Fri, Feb 23, 2018 at 2:00 PM, David Sweeney <span dir="ltr"><<a href="mailto:D.Sweeney@smithzuccarini.com" target="_blank">D.Sweeney@smithzuccarini.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1f497d">Possibly you would have to look at the Washington Principal and Income Act?<u></u><u></u></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1f497d"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d">David B. Sweeney
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Smith & Zuccarini, P.S. <br>
2155-112th Avenue NE <br>
Bellevue, Washington 98004 <u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:#1f497d">Telephone: <a href="tel:(425)%20453-4455" value="+14254534455" target="_blank">425-453-4455</a> <br>
Direct Line: <a href="tel:(425)%20990-1586" value="+14259901586" target="_blank">425-990-1586</a> <br>
Facsimile: <a href="tel:(425)%20453-4454" value="+14254534454" target="_blank">425-453-4454</a> <br>
<a title="mailto:D.sweeney@smithzuccarini.com"><span style="color:black">E-mail:D.sweeney@<wbr>smithzuccarini.com</span></a>
<br>
<a href="http://www.smithzuccarini.com/" title="http://www.smithzuccarini.com/" target="_blank"><span style="color:blue">www.smithzuccarini.com</span></a>
</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1f497d"><u></u><u></u></span></p><span class="">
<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"> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.<wbr>com</a> [mailto:<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.<wbr>wsbarppt.com</a>]
<b>On Behalf Of </b>David Faber<br>
<b>Sent:</b> Friday, February 23, 2018 1:41 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] IRC Definition of "Income"<u></u><u></u></span></p>
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<p class="MsoNormal">I'm trying to find a definition of the term "income" (not "gross income") under the IRC. The "gross income" definition in IRC 61(a)(15) states that "income from an estate or trust" but does not provide any guidance on what "income" means
in that context. Can anyone tell me how "income" is defined independent of the term "gross"?<u></u><u></u></p><div><div class="h5">
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Best,<u></u><u></u></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">David J. Faber<u></u><u></u></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Faber Feinson PLLC<u></u><u></u></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">210 Polk Street, Suite 1<u></u><u></u></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Port Townsend, WA 98368<br>
<a href="tel:(360)%20379-4110" value="+13603794110" target="_blank">(360) 379-4110</a><u></u><u></u></span></p>
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<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,
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