<div dir="ltr">With no out of state properties, I would probably not use an RLT unless the client had a strong desire or reason to avoid probate which isn't present here.<div><br></div><div>Given there's already an RLT in place, and it's partially funded, the question would be if it's easier to finish proper funding (if possible - by transferring business interests to the trustee, plus any property interests outside the trust and business interests), or just revoke and put a replacement will in place. Sounds likely the latter would be easier here.</div></div><br><div class="gmail_quote"><div dir="ltr">On Tue, Sep 25, 2018 at 12:35 PM Kim Hammit <<a href="mailto:kim@gsjoneslaw.com">kim@gsjoneslaw.com</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><br>
Thank you Marvin and David, - David, to answer your question as to who holds<br>
interest in the LLC and Inc., it is both the husband and wife. I read your<br>
message to mean that it makes sense to do away with the RLT and just do a<br>
new will dividing property as they wish? <br>
<br>
Or are you saying they would have to own the LLC/Inc. interests as "Trustees<br>
of the ABC Trust" rather than individually as they do now? That seems like<br>
more unnecessary work and I'm not understanding what benefit they would gain<br>
from that.<br>
<br>
I certainly don't want to imply the prior attorney did anything wrong here<br>
but I cannot wrap my head around the way it was done and the clients are<br>
clueless - they just know they don't understand it.<br>
<br>
Kim<br>
<br>
Message: 10<br>
Date: Tue, 25 Sep 2018 10:35:52 -0700<br>
From: Marvin Benson <<a href="mailto:marvinbensonlaw@gmail.com" target="_blank">marvinbensonlaw@gmail.com</a>><br>
To: "WSBA Probate & Trust Listserv" <<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a>><br>
Subject: Re: [WSBAPT] RLT question<br>
Message-ID:<br>
<<a href="mailto:CACodssrjGhMSRkDSFVHAUA5RyEM_ZmpDdSok6A24iLYrsY9DYw@mail.gmail.com" target="_blank">CACodssrjGhMSRkDSFVHAUA5RyEM_ZmpDdSok6A24iLYrsY9DYw@mail.gmail.com</a>><br>
Content-Type: text/plain; charset="utf-8"<br>
<br>
I also do not see that the RLT is doing them any good with properties<br>
outside the trust. Since they are not interested in probate avoidance, it<br>
might be better to redo the will so it is not a pour over will.<br>
<br>
Marvin Benson<br>
<br>
On Tue, Sep 25, 2018 at 10:22 AM Kim Hammit <<a href="mailto:kim@gsjoneslaw.com" target="_blank">kim@gsjoneslaw.com</a>> wrote:<br>
<br>
> I was presented with an estate package that clients want to revise. <br>
> There is a RLT, pour over will, reciprocal POA, separate general <br>
> durable POA (not sure why separate), HC Directives. They have several <br>
> properties ? some are in LLC, some in INC, some individually and one <br>
> is joint with child (they want this to stay out of estate and just go <br>
> to daughter since they are just cosigners on the loan. The trust <br>
> schedule shows all properties under each business but they were not <br>
> deeded to the trust, in fact none of the properties were ever deeded <br>
> to the trust. Wouldn?t that require a probate of the pour over will to<br>
get those properties into the trust at death?<br>
> What is the point of a trust in this scenario? I don?t want to run up <br>
> a big bill for the clients redoing everything but I don?t see a real <br>
> need or benefit of the RLT if the properties are in the individual <br>
> businesses, not the trust. Total NET value of estate is around $1.7M <br>
> and there are no out of state properties. Neither client particularly <br>
> cares to avoid probate nor are they terribly concerned about <br>
> post-death disputes. Since none of the properties were transferred to <br>
> the trust, is there any potential harm in simply doing away with the <br>
> trust and providing for potential tax concerns in testamentary trusts?<br>
><br>
><br>
><br>
><br>
><br>
> Kimberly S. Hammit<br>
><br>
> Associate Attorney<br>
><br>
><br>
><br>
> GSJONES LAW GROUP, P.S.<br>
><br>
> 1155 Bethel Avenue<br>
><br>
> Port Orchard, WA 98366<br>
><br>
> Tel: (360) 876-9221<br>
><br>
> Fax: (360) 876-5097<br>
><br>
><br>
><br>
><br>
><br>
> GSJONES LAW GROUP, P.S. - The information in this email message may be <br>
> privileged, confidential, or otherwise protected from disclosure. Any <br>
> review, dissemination or use of this transmission or its contents by <br>
> persons other than the addressee(s) is strictly prohibited and this <br>
> transmission does not constitute a waiver. If you have received this <br>
> transmission in error, please delete this email and respond to sender <br>
> via <a href="mailto:kim@gsjoneslaw.com" target="_blank">kim@gsjoneslaw.com</a> or call our office at (360) 876-9221.<br>
><br>
><br>
> _______________________________________________<br>
> WSBAPT mailing list<br>
> <a href="mailto:WSBAPT@lists.wsbarppt.com" target="_blank">WSBAPT@lists.wsbarppt.com</a><br>
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Message: 11<br>
Date: Tue, 25 Sep 2018 10:52:43 -0700<br>
From: David King <<a href="mailto:david@soundadvocates.com" target="_blank">david@soundadvocates.com</a>><br>
To: "WSBA Probate & Trust Listserv" <<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a>><br>
Subject: Re: [WSBAPT] RLT question<br>
Message-ID:<br>
<CANs35_=<a href="mailto:rdD_2yKH1sPm%2Bgkiaz%2B28RiDEoujBzBFAnkVT98yjNA@mail.gmail.com" target="_blank">rdD_2yKH1sPm+gkiaz+28RiDEoujBzBFAnkVT98yjNA@mail.gmail.com</a>><br>
Content-Type: text/plain; charset="utf-8"<br>
<br>
Who are the members or shareholders of the entities holding the properties?<br>
That seems to me to be the most pertinent question re: trust funding and RLT<br>
usefulness here. If Trustee / Trust holds the business interests, this can<br>
work. Trustee would not be the outright owner of the properties if they are<br>
held by business entities but can control the properties through the<br>
business ownership.<br>
<br>
On Tue, Sep 25, 2018 at 10:49 AM Marvin Benson <<a href="mailto:marvinbensonlaw@gmail.com" target="_blank">marvinbensonlaw@gmail.com</a>><br>
wrote:<br>
<br>
> I also do not see that the RLT is doing them any good with properties <br>
> outside the trust. Since they are not interested in probate <br>
> avoidance, it might be better to redo the will so it is not a pour over<br>
will.<br>
><br>
> Marvin Benson<br>
><br>
> On Tue, Sep 25, 2018 at 10:22 AM Kim Hammit <<a href="mailto:kim@gsjoneslaw.com" target="_blank">kim@gsjoneslaw.com</a>> wrote:<br>
><br>
>> I was presented with an estate package that clients want to revise.<br>
>> There is a RLT, pour over will, reciprocal POA, separate general <br>
>> durable POA (not sure why separate), HC Directives. They have several<br>
properties ?<br>
>> some are in LLC, some in INC, some individually and one is joint with <br>
>> child (they want this to stay out of estate and just go to daughter <br>
>> since they are just cosigners on the loan. The trust schedule shows <br>
>> all properties under each business but they were not deeded to the <br>
>> trust, in fact none of the properties were ever deeded to the trust. <br>
>> Wouldn?t that require a probate of the pour over will to get those <br>
>> properties into the trust at death? What is the point of a trust in <br>
>> this scenario? I don?t want to run up a big bill for the clients <br>
>> redoing everything but I don?t see a real need or benefit of the RLT <br>
>> if the properties are in the individual businesses, not the trust. <br>
>> Total NET value of estate is around $1.7M and there are no out of <br>
>> state properties. Neither client particularly cares to avoid probate nor<br>
are they terribly concerned about post-death disputes.<br>
>> Since none of the properties were transferred to the trust, is there <br>
>> any potential harm in simply doing away with the trust and providing <br>
>> for potential tax concerns in testamentary trusts?<br>
>><br>
>><br>
>><br>
>><br>
>><br>
>> Kimberly S. Hammit<br>
>><br>
>> Associate Attorney<br>
>><br>
>><br>
>><br>
>> GSJONES LAW GROUP, P.S.<br>
>><br>
>> 1155 Bethel Avenue<br>
>><br>
>> Port Orchard, WA 98366<br>
>><br>
>> Tel: (360) 876-9221<br>
>><br>
>> Fax: (360) 876-5097<br>
>><br>
>><br>
>><br>
>><br>
>><br>
>> GSJONES LAW GROUP, P.S. - The information in this email message may <br>
>> be privileged, confidential, or otherwise protected from disclosure. <br>
>> Any review, dissemination or use of this transmission or its contents <br>
>> by persons other than the addressee(s) is strictly prohibited and <br>
>> this transmission does not constitute a waiver. If you have received <br>
>> this transmission in error, please delete this email and respond to <br>
>> sender via <a href="mailto:kim@gsjoneslaw.com" target="_blank">kim@gsjoneslaw.com</a> or call our office at (360) 876-9221.<br>
>><br>
>><br>
>> _______________________________________________<br>
>> WSBAPT mailing list<br>
>> <a href="mailto:WSBAPT@lists.wsbarppt.com" target="_blank">WSBAPT@lists.wsbarppt.com</a><br>
>> <a href="http://mailman.fsr.com/mailman/listinfo/wsbapt" rel="noreferrer" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><br>
><br>
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<br>
<br>
<br>
--<br>
David M. King, Attorney<br>
<br>
707 E Harrison Street<br>
Seattle, WA 98102<br>
Phone: 206-420-8710<br>
Fax: 206-973-3034<br>
<br>
<br>
This electronic message contains information from the law firm of Sound<br>
Advocates Law Group PLLC. The contents may be privileged and confidential<br>
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</blockquote></div><br clear="all"><div><br></div>-- <br><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div>David M. King, Attorney<br><img src="https://drive.google.com/a/soundadvocates.com/uc?id=1wKjZMtnw9shJaqBVwFivy77If1IpYvkd&export=download" width="200" height="34"><br>707 E Harrison Street</div>
<div>Seattle, WA 98102<br>Phone: 206-420-8710</div><div>Fax: 206-973-3034</div>
<p><br>This electronic message contains information from the law firm of<br>Sound Advocates Law Group PLLC. The contents may be privileged and<br>confidential and are intended for the use of the intended addressee(s)<br>only. If you are not an intended addressee, note that any disclosure,<br>copying, distribution, or use of the contents of this message is<br>prohibited. If you have received this e-mail in error, please contact<br>me at <a href="mailto:david@soundadvocates.com" target="_blank">david@soundadvocates.com</a>.</p></div></div></div>