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<p class="MsoNormal"><a name="_GoBack"></a><span style="color:#1F497D">Sharon:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">I think if you break this down, your client has an unjust enrichment claim that she could pursue against mom for care services, as such at a minimum the assets of the revocable living trust would be exposed to
satisfy the claim. As such, the current trustee of the RLT could enter into an agreement to satisfy this claim for past services and also contract for future services. It is unclear from your facts whether the irrevocable trust is a first party self-settled
trust that would not have any creditor protection under Washington law, but if it is, the same would hold true. I also think that the trustee of the irrevocable trust (even if it has creditor protection) may want to ensure that its beneficiary is not sued,
and therefore, could be willing to settle the claim for past work and enter into a contract for future work. Of course, that trustee of the irrev. trust is going to want remainder beneficiaries to sign off on this action. Therefore, you wouldn’t have to
worry about distributing principal and income outside the terms of the trust, but rather do it for the benefit of the beneficiary to protect the beneficiary.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Keep in mind the rules for Medicaid and requirement of contemporaneous payment of a family caregiver if Medicaid is anywhere on the horizon, but your post suggests that is not the case.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">I agree that you cannot represent mom.
<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" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Lyon, Weigand & Gustafson, P.S.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">P.O. Box 1689
<br>
Yakima, Washington 98907 <br>
Telephone: (509) 248-7220 <br>
Facsimile: (509) 575-1883 <o:p></o:p></span></p>
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<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">NOTICES:<o:p></o:p></span></u></b></p>
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<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>Sharon Rutberg<br>
<b>Sent:</b> Thursday, November 12, 2020 4:18 PM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] caregiver child scenario<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:13.0pt">Hello, list mates – <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt">My client is one of three adult children whose elderly mother has needed substantial help with care and arranging care for her. My client gave up a highly compensated professional job and also depleted savings
to care for and arrange care for her mother. Upon mom’s death, the three children are to receive an equal share of mon’s sizable estate, according to the terms of two trusts of which mom is the beneficiary – one revocable and one irrevocable. The other two
children, both professionals who have been able to keep working, agree this is not a fair outcome.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt">There is a significant question whether mom has capacity to amend her revocable trust to provide for a larger share to the caregiver child at mom’s death, and the trust forbids her agent under a DPOA from
making such an amendment. I have concluded that I should not also represent mom in amending her trust to change the beneficiary structure, due to the potential for a conflict of interest, and that another attorney would need to consult with mom and determine
if she has capacity. In an effort to avoid bringing in other attorneys, we have also looked at whether a trustee of the irrevocable trust could distribute principal from that trust to the caregiver child, if the transaction were properly documented. And of
course there is the option of having the trusts pay the caregiver child some amount of taxable compensation.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt">I have explored these questions with a couple of other attorneys so far.
<b>My question is this: Have you represented a family member in a similar situation, and what solution(s) did the family come up with?
</b>I think this must not be an uncommon situation. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt">Best,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt">Sharon <o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">Sharon C. Rutberg, Attorney at Law</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">Salmon Bay Law Group, PLLC</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">1734 NW Market St.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">Seattle, WA 98107</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">206-735-3177, ext. 2</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><a href="mailto:sharon@salmonbaylaw.com"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">sharon@salmonbaylaw.com</span></a></span><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">
</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">Website:
<a href="http://www.salmonbaylaw.com/">www.salmonbaylaw.com</a></span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana","sans-serif";color:black">Washington State Bar #47055<br>
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