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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black">Hello all,</span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black"> </span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black">I am sure the answers to this are straightforward, but I can’t seem to think this one through properly:</span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black"> </span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black">I have an estate that consists entirely of community property valued at $6m. Of that, $4m is held in IRAs, $3.6m of which is in an IRA in W’s name only; the remaining
$400k in an IRA in H’s name only. The IRAs name the other spouse as a beneficiary. H dies, and in his Will leaves all of his interest in the couple’s community property to a Marital Trust, the initial beneficiary of which is W. The Marital Trust contains a
limited power of appointment for W (to H and W’s daughter or charitable organizations only). This raises the following questions:</span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black"> </span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
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<li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1"><span style="font-family:"Chaparral Pro",serif">Does the limited power of appointment prevent treatment of the Marital Trust as a bypass trust for WA estate tax purposes?</span><o:p></o:p></li><li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1"><span style="font-family:"Chaparral Pro",serif">Does the Marital Trust need to funded with $3m in assets (1/2 of all of the community property), or can it be funded with less? Specifically, can
all of W’s IRA stay in her name, or does a portion of that need to be transferred to the Marital Trust because that IRA alone makes up more than 50% of the community property? I am trying to avoid that result given the negative tax consequences that would
be triggered.</span><o:p></o:p></li></ol>
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<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black">Any pointers – or referrals – would be greatly appreciated.</span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black">Thank you!</span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black"> </span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black">Natalie</span><span style="font-size:13.5pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Chaparral Pro",serif;color:#060A2E">Natalie N. Kuehler</span><span style="font-size:11.0pt;color:#060A2E"><o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-family:"Chaparral Pro",serif;color:#060A2E">THE KUEHLER LAW FIRM PLLC</span><span style="font-size:11.0pt;color:#060A2E"><o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Chaparral Pro",serif;color:#060A2E">PO Box 3059 – 1112 State Route 20</span><span style="font-size:11.0pt;color:#060A2E"><o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Chaparral Pro",serif;color:#060A2E">Winthrop, WA 98862</span><span style="font-size:11.0pt;color:#060A2E"><o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Chaparral Pro",serif;color:#060A2E">o: (509) 996-2832 x1 – c (509) 557-5769<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Chaparral Pro",serif;color:#060A2E"><a href="http://www.kuehlerlaw.com"><span style="color:#0563C1">www.kuehlerlaw.com</span></a></span><span style="font-size:11.0pt;color:#060A2E"><o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:11.0pt;font-family:"Chaparral Pro",serif;color:#060A2E"> </span><span style="font-size:11.0pt;color:#060A2E"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Chaparral Pro",serif;color:#060A2E">CONFIDENTIALITY STATEMENT: This message contains information that may be confidential and protected by the attorney-client privilege. If you received this message
in error, please notify the sender immediately and delete the message.</span><span style="font-size:11.0pt;color:#060A2E"><o:p></o:p></span></p>
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