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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>Is it possible that there was a mistake of fact or law involved in the design of the estate plan?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>If so, you might consider the application of RCW 11.96A.125 to reform it to conform with the testator/testatrix intent:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a href="https://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.125">https://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.125</a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Best regards, <o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>JOHN J. SULLIVAN, <br>ATTORNEY<o:p></o:p></p><p class=MsoNormal>LYONS | SULLIVAN<br>10655 NE 4TH STREET, SUITE 704<br>BELLEVUE, WA 98004<br>425·451·2400 TEL 425-451-7385 FAX<br><a href="http://WWW.DLJSLAW.COM">WWW.DLJSLAW.COM</a><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Confidentiality Notice<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>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<o:p></o:p></p><p class=MsoNormal><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> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Philip N. Jones<br><b>Sent:</b> Friday, January 17, 2020 8:46 PM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] Using TEDRA to divert funds from overfunded credit shelter trust to fund QTIP trust<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>For ethical reasons, we are not allowed to give tax advice based on the likelihood of an item being discovered or challenged on audit. See, for example, IRS Circular 230. If the question were whether the WDOR would be successful in raising that issue, the answer would be that the odds of success for the WDOR would be high. A divergence from the will (even through a binding agreement) requires that it must be based on a bona fide enforceable cause of action, and the remedy must be supported by local law, even if a probate court judge were to approve it. If those two factors are not present, the result will be ignored for tax purposes. Lots of rulings and cases support those two requirements. Neither of those factors appear to be present under these facts. <o:p></o:p></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'>Phil Jones<o:p></o:p></p><div><p class=MsoNormal>Philip N. Jones <o:p></o:p></p><div><p class=MsoNormal>Duffy Kekel LLP<o:p></o:p></p></div><div><p class=MsoNormal>Portland, OR<o:p></o:p></p></div><div><p class=MsoNormal><a href="mailto:pjones@duffykekel.com">pjones@duffykekel.com</a><o:p></o:p></p></div><div><p class=MsoNormal>(503) 226-1371<o:p></o:p></p></div></div><div><p class=MsoNormal><br><br><o:p></o:p></p><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal style='margin-bottom:12.0pt'>On Jan 17, 2020, at 4:09 PM, Jose L Sanchez <<a href="mailto:jose@joselsanchez.com">jose@joselsanchez.com</a>> wrote:<o:p></o:p></p></blockquote></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal> <o:p></o:p></p><div><p class=MsoNormal><span style='color:black'>An estate with $6M has all of the funds going to a credit shelter trust and no funds going to the marital QTIP trust. How likely is the WA DOR to challenge a nonjudicial binding agreement that funds the marital deduction QTIP trust instead of the credit shelter trust?</span> <o:p></o:p></p><div><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='color:black'>Thanks for your feedback.<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='color:#888888'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='color:#888888'>Jose L. Sanchez<o:p></o:p></span></p></div></div><p class=MsoNormal>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<br>_______________________________________________<br>WSBAPT mailing list<br><a href="mailto:WSBAPT@lists.wsbarppt.com">WSBAPT@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbapt">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><o:p></o:p></p></div></blockquote></div></div></body></html>