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<p class="MsoNormal">Again: can a transfer on death deed EFFECTIVELY include a life estate to someone?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Jane Bitz<br>
<b>Sent:</b> Wednesday, April 27, 2022 10:48 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] (no subject)<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt">One other consideration for a life estate is that the State can make an estate recovery from the value of a decedent’s life estate if they receive Medicaid assistance for long term care during their lifetime.
And if the surviving partner’s children want to “buy out” the life estate from their parent, the values are assigned by a life estate valuation chart that is not very favorable and certainly not governed by real world market values. Example: the life estate
for 75 year old is .52149 of the fair market value of the property interest.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">So if the surviving partner owns 40% of the property and the life estate for the 60% share, the State could recover up to about 72% of the value of the property at the death of the surviving partner. The State’s
estate recovery is dollar for dollar of what the Medicaid program spends on the surviving partner’s care.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Jane.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Cambria",serif;color:#4472C4">Jane G. Bitz</span></b><b><span style="font-size:14.0pt;font-family:"Cambria",serif;color:#1F497D"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#1F497D">Of Counsel | Wolff, Hislop & Crockett, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-family:"Cambria",serif;color:#1F497D">Helping Good People do Great Things!<o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#1F497D">12209 E. Mission Ave., Suite 5<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#1F497D">Spokane Valley, WA 99206<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#1F497D">(509) 927-9700 (Phone)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#1F497D">(509) 777-1800 (Fax)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#4472C4"><a href="mailto:jbitz@whc-attorneys.com"><span style="color:#4472C4">jbitz@whc-attorneys.com</span></a> [Email]</span><span style="font-family:"Cambria",serif;color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F4E79"><a href="http://www.wolffandhislop.com/"><span style="font-family:"Cambria",serif;color:#1F4E79">www.whc-attorneys.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><img border="0" width="136" height="164" style="width:1.4166in;height:1.7083in" id="Picture_x0020_1" src="cid:image001.jpg@01D85B0D.F15F5990" alt="signatureLogo"></span><span style="color:black"><img border="0" width="80" height="70" style="width:.8333in;height:.7291in" id="Picture_x0020_2" src="cid:image002.png@01D85B0D.F15F5990"><img border="0" width="201" height="71" style="width:2.0937in;height:.7395in" id="Picture_x0020_3" src="cid:image003.jpg@01D85B0D.F15F5990"></span><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:8.0pt;font-family:"Times New Roman",serif;color:#1F497D"><o:p> </o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:8.0pt;font-family:"Times New Roman",serif;color:#1F497D">THE CONTENTS OF THIS ELECTRONIC MAIL ARE CONFIDENTIAL AND PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE OR OTHER APPLICABLE PROTECTION. Any review, use, distribution
or disclosure by others is strictly prohibited. If you have received this electronic mail in error, PLEASE NOTIFY ME BY E-MAIL, FAX OR TELEPHONE and PROMPTLY DELETE this electronic mail. This mail cannot be modified without the express written consent of
Wolff, Hislop, & Crockett, PLLC. Thank You.</span></i><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<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">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Diane J. Kiepe<br>
<b>Sent:</b> Wednesday, April 27, 2022 9:55 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] (no subject)<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:16.0pt">Honestly, in my opinion, there is no good way to do this because there is no telling how long survivor will stay, the condition of property on first death versus second death, etc. That being said, many people
want it done. Some thoughts for consideration:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3"><span style="font-size:16.0pt">Life estate in decedent’s interest in favor of survivor with clear language on split of responsibility for property taxes, repairs, ability for improvements
to be made, right of remainder benes to review property on proper notice, etc.<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3"><span style="font-size:16.0pt">Consider allowing survivor the right to purchase the home at current FMV (or whatever terms).<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3"><span style="font-size:16.0pt">Put home into revocable trust now with clear terms and allow one child from each family to serve as Trustee.<o:p></o:p></span></li></ol>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">I’m sure there are other creative ways to address this fact pattern but in the end, most my clients want to do the Life Estate – I warn them that it’s a potential recipe for disaster but in the end, the client
is my boss so long as what they want is not violating any laws or rules of ethics.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">Good luck.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold"">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold""><o:p> </o:p></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<o:p></o:p></p>
<p class="MsoNormal">Douglas Eden<o:p></o:p></p>
<p class="MsoNormal">717 W. Sprague Ave.<o:p></o:p></p>
<p class="MsoNormal">Suite 1500<o:p></o:p></p>
<p class="MsoNormal">Spokane, WA 99201<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com">djkiepe@depdslaw.com</a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<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">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Lynn Clare<br>
<b>Sent:</b> Monday, April 25, 2022 10:55 AM<br>
<b>To:</b> WSBA Probate & Trust listserve <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] (no subject)<o:p></o:p></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Unmarried PC's own a home together as TIC with a 60/40 split of interest. They want their adult children from previous relationships to inherit their estates including their
share of the house.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">BUT they want the surviving partner to be allowed to live in the house for as long or as little as needed while still ensuring that both sets of heirs inherit when the second
partner passes.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">What's the best mechanism for doing this? <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
</div>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Lynn Clare<o:p></o:p></span></p>
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