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<p class="MsoNormal"><span style="color:#1F497D">I have always been interested in the question of the failure to fund a credit shelter trust following the first death. That question seems to come up from time to time (fortunately not frequently). I have always
felt that the trustee (and any successor trustee) has a continuing obligation to cure the breach of fiduciary duty and to fund the trust, no matter how late the funding might be. You indicated you have found extensive case law. If you would be willing to
share those cites, or some of them, that would be very nice, particularly if the cites come from Oregon or Washington. I practice right on the border between the two states, and practice in both states, so any such cites would be much appreciated. But cites
from other states would also be helpful.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Phil Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Portland, OR<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jen Doehne<br>
<b>Sent:</b> Thursday, June 07, 2018 9:43 AM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Authority for Irrevocable Credit Trust<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">We are trying to compel the funding of the trust and argue that it was always contemplated by decedent to be irrevocable.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<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>Rod Harmon<br>
<b>Sent:</b> Thursday, June 07, 2018 9:41 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBAPT] Authority for Irrevocable Credit Trust<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Are you trying to establish that no trust was created?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Or are you trying to compel the funding of the trust?<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D">Rod Harmon</span><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D"> </span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D">RODNEY T. HARMON</span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-family:"Arial",sans-serif;color:#1F497D"> Attorney at Law</span></b><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> P.O. Box 1066</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Bothell, WA 98041</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Tel: (425) 402-7800</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Fax: (425) 458-9096</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="http://www.rodharmon.com">www.rodharmon.com</a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="mailto:rodharmon@msn.com">rodharmon@msn.com</a></span><o:p></o:p></p>
<p class="MsoNormal" style="margin-top:6.0pt"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<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>Jen Doehne<br>
<b>Sent:</b> Thursday, June 7, 2018 9:14 AM<br>
<b>To:</b> 'WSBAPT@lists.wsbarppt.com' <<a href="mailto:WSBAPT@lists.wsbarppt.com">WSBAPT@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] Authority for Irrevocable Credit Trust<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hi Everyone-<o:p></o:p></p>
<p class="MsoNormal">I am working on a very contentious case where the main issue is a Credit Trust whereby the surviving spouse grantor failed to fund it and attempted to make several amendments to it (such as changing beneficiaries). I have completed hours
of research and have found <u>many</u> cases whereby the court states <i>in dicta</i> that the Credit Trust is irrevocable and must be funded but I have found no statutory backing.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The Credit Trust itself says that “Each Grantor while living reserves the right as to the assets transferred to, attributable to, or derived from, property contributed by such Grantor. . .” and further that “Trustee shall allocate to the
Credit Trust an amount of property from the decedent’s one half interest in the community property of the Trust Estate (and if insufficient, from the Decedent’s separate property of the Trust Estate) equal to the minimum otherwise unused pecuniary amount necessary
to exhaust the maximum unified credit . . .”<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">So far the wording of the Trust itself is my best argument that the Credit Trust is irrevocable and must be funded at the first spouse’s death. Does anyone know of any statutory or actual case law that may shed light on this?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:black">Thank you so much! Best wishes,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">Jen<o:p></o:p></span></p>
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