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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>John,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>I’ve been faced with this question, too. Although the statute requires “qualified beneficiaries” to be informed of their right to information to protect their interests, it is unclear about what information they can rightfully request. I imagine that a professional fiduciary wants to provide as much information as possible up front to avoid being hassled with ongoing requests, but I don’t see anything in the statute that requires that extent of disclosure.<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><i><span style='font-family:Andalus;color:black;border:none windowtext 1.0pt;padding:0in'>Eden Rubenstein Toner</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";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;color:black;border:none windowtext 1.0pt;padding:0in'>Attorney at Law</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";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;color:black;border:none windowtext 1.0pt;padding:0in'>1600-B SW Dash Point Road, #163</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";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;color:black;border:none windowtext 1.0pt;padding:0in'>Federal Way, WA 98023</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";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;color:black;border:none windowtext 1.0pt;padding:0in'>phone 206-953-4485</span></i><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";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;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='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black;border:none windowtext 1.0pt;padding:0in'><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'><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><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>JOHN J SULLIVAN<br><b>Sent:</b> Monday, April 23, 2018 2:11 PM<br><b>To:</b> WSBA RPPT Listserv<br><b>Subject:</b> [WSBAPT] Regular Trustee Statements to Remainder Beneficiaries??<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p><span style='font-family:"Helvetica","sans-serif";color:#333333'>Listmates:<o:p></o:p></span></p><p><span style='font-family:"Helvetica","sans-serif";color:#333333'><o:p> </o:p></span></p><p><span style='font-family:"Helvetica","sans-serif";color:#333333'>QOD: A professional trustee of an irrevocable credit shelter trust established following the death of the first spouse-grantor has suddenly taken the position that it is required to send monthly statements of the trust's investment accounts to the remainder beneficiaries, who are all the adult children of either the deceased or surviving spouse-grantor. The surviving spouse-grantor is the sole "permissible distributee." No distributions to the children remainder beneficiaries are authorized while the surviving spouse is alive (and competent). <o:p></o:p></span></p><p><span style='font-family:"Helvetica","sans-serif";color:#333333'><o:p> </o:p></span></p><p><span style='font-family:"Helvetica","sans-serif";color:#333333'>Is the trustee required or even authorized to share such confidential information with the remainder beneficiaries?<o:p></o:p></span></p><p><span style='font-family:"Helvetica","sans-serif";color:#333333'><o:p> </o:p></span></p><p><span style='font-family:"Helvetica","sans-serif";color:#333333'>As I read the applicable statutes, RCW 11.106.020 requires the trustee to provide an annual report itemizing receipts and distributions to all "permissible distributees." A "permissible distributee under RCW 11.98.002 is only someone currently eligible to receive mandatory or discretionary distributions.<br><br>RCW 11.98.072(1) requires a trustee to keep "qualified beneficiaries" reasonably informed about the administration of the trust and to respond to requests for information from them. Subsection (2) contains the requirement of the "trust notice" letters that have become standard practice since the statute came into effect in 2011. But ... subsection (3) contains an exception to the requirements of both (1) and (2) that appears to apply to my client's circumstances. It provides that the trustee may not be required to provide any information described in subsection (1) or(2) to <o:p></o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'>"any beneficiary of a trust other than the trustor's spouse or domestic partner if:<o:p></o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'><o:p> </o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'>(a) Such spouse or domestic partner has capacity;<o:p></o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'>(b) Such spouse or domestic partner is the only permissible distributee of the trust; and<o:p></o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'>(c) All of the other qualified beneficiaries of the trust are the descendants of the trustor and the trustor's spouse or domestic partner."<br><br>Am I missing something? Has there been a recent change in the law??<o:p></o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'><o:p> </o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'>Thanks in advance for your help.<o:p></o:p></span></p><p style='text-indent:.25in;box-sizing: border-box;open sans"helvetica,arial,sans-serif;orphans: 2;-webkit-text-stroke-width: 0px;word-spacing:0px'><span style='font-family:""","serif";color:black'><o:p> </o:p></span></p><p><strong>Best regards</strong>,<o:p></o:p></p><p><a href="mailto:dlyons@lyonslawoffices.com">John J. Sullivan</a>,<o:p></o:p></p><p>Attorney<o:p></o:p></p><p>Lyons | Sullivan<o:p></o:p></p><p>10655 NE 4<sup>th</sup> Street, Suite 704<o:p></o:p></p><p>Bellevue, WA 98004<o:p></o:p></p><p>425·451·2400 tel 425-451-7385 fax<o:p></o:p></p><p><a href="http://www.dljslaw.com/">www.dljslaw.com</a><o:p></o:p></p><p><em><b><u>Confidentiality Notice</u></b></em><o:p></o:p></p><p><em>This email transmission is intended only for the addressee named above. It contains information that is privileged, confidential, or otherwise protected from use and disclosure. If you are not the intended recipient, you are hereby notified that any review, disclosure, copying, or dissemination of this transmission or the taking of any action in reliance on its contents or other use is strictly prohibited. If you have received this transmission in error, please destroy the original and notify us by telephone immediately. Thank you for your cooperation.</em><o:p></o:p></p></div></body></html>