<html xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=Windows-1252">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:"Chaparral Pro";
panose-1:2 6 5 3 4 5 5 2 2 3;}
@font-face
{font-family:"Times New Roman \(Body CS\)";
panose-1:2 11 6 4 2 2 2 2 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:10.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:#0563C1;
text-decoration:underline;}
span.EmailStyle19
{mso-style-type:personal-reply;
font-family:"Chaparral Pro",serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
/* List Definitions */
@list l0
{mso-list-id:378090506;
mso-list-template-ids:1170135560;}
@list l1
{mso-list-id:1704086414;
mso-list-template-ids:-1733818652;}
@list l1:level1
{mso-level-tab-stop:.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level2
{mso-level-tab-stop:1.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level3
{mso-level-tab-stop:1.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level4
{mso-level-tab-stop:2.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level5
{mso-level-tab-stop:2.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level6
{mso-level-tab-stop:3.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level7
{mso-level-tab-stop:3.5in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level8
{mso-level-tab-stop:4.0in;
mso-level-number-position:left;
text-indent:-.25in;}
@list l1:level9
{mso-level-tab-stop:4.5in;
mso-level-number-position:left;
text-indent:-.25in;}
ol
{margin-bottom:0in;}
ul
{margin-bottom:0in;}
--></style>
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72" style="word-wrap:break-word">
<div class="WordSection1">
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif">Thank you!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif">Yes, all income to W; discretionary principal to W under HEMS standard.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif">Yes, the limited power of appointment is testamentary only, i.e. exercisable at death.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif">Does W still need to fund the Marital Trust with a full $3m, which will include part of W’s IRA, or is there a way to get around that?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif">Natalie<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
<div>
<div>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif;color:#060A2E">Natalie N. Kuehler</span><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif;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">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"><o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"><o:p> </o:p></span></p>
<div style="border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:12.0pt;color:black">From:
</span></b><span style="font-size:12.0pt;color:black">wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Philip N. Jones <pjones@duffykekel.com><br>
<b>Date: </b>Wednesday, June 22, 2022 at 5:46 PM<br>
<b>To: </b>WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject: </b>Re: [WSBAPT] Community Property/Marital Trust Questions<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">What are the other terms of the marital trust? All income to W? Discretionary principal to W under a HEMS standard?</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Does the limited power of appointment apply only after W dies? In other words, is it testamentary, exercisable at her death?</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">I believe that the marital trust can be used as a bypass trust. Just don’t make a QTIP election, except perhaps for the portion in excess of the Washington exemption.</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Phil Jones</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Philip N. Jones</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Duffy Kekel LLP</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">900 S.W. Fifth Ave. Suite 2500</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Portland, OR 97204</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><a href="mailto:pjones@duffykekel.com">pjones@duffykekel.com</a></span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-1371 – office</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 853-1482 – cell</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-3574 - fax</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="font-size:11.0pt">From:</span></b><span style="font-size:11.0pt"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Natalie Kuehler<br>
<b>Sent:</b> Wednesday, June 22, 2022 4:14 PM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Community Property/Marital Trust Questions</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><span style="font-size:12.0pt"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black">Hello all,</span><span style="font-size:12.0pt"><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:12.0pt"><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:12.0pt"><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:12.0pt"><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:12.0pt"><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:12.0pt"><o:p></o:p></span></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoNormal" style="color:black;mso-list:l1 level1 lfo3"><span style="font-size:12.0pt;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><span style="font-size:12.0pt"><o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-list:l1 level1 lfo3"><span style="font-size:12.0pt;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><span style="font-size:12.0pt"><o:p></o:p></span></li></ol>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:"Chaparral Pro",serif;color:black"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<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:12.0pt"><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:12.0pt"><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:12.0pt"><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:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif"> </span><span style="font-size:12.0pt"><o:p></o:p></span></p>
<div>
<div>
<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:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Chaparral Pro",serif;color:#060A2E">THE KUEHLER LAW FIRM PLLC</span><span style="font-size:12.0pt"><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:12.0pt"><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:12.0pt"><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</span><span style="font-size:12.0pt"><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="https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.kuehlerlaw.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7Ca47176f77fc74bdfdddc08da54a542f4%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C637915366025551564%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000%7C%7C%7C&sdata=W1%2BphC2Y9Qm8YDNoxDwTczaER5ILvk9Q8te211et%2FIQ%3D&reserved=0">www.kuehlerlaw.com</a></span><span style="font-size:12.0pt"><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:12.0pt"><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:12.0pt"><o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><span style="font-size:12.0pt"> <o:p></o:p></span></p>
</div>
</body>
</html>