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<p class="MsoNormal"><span style="font-size:12.0pt">Hi All:<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">I have a client that owns shares in a private bank that was established by a distant relative, over 150 years ago. The shares are all owned by relatives of the original founder of the bank. Before the client’s
father died, the Bank converted from a C-Corp and is now an S-Corp, subject to the ownership limitations of that form of ownership. We would need to seek permission from the bank before transferring the shares to the Trust.<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">Client also owns a family cabin. He wants to place the cabin property and the S-Corp shares in an irrevocable trust for the benefit of his children & grandchildren. My research shows that a “grantor” trust
can be the owner of S-Corp shares, but I am unsure if an irrevocable trust would be considered a grantor trust by the IRS. The reason for the irrevocable trust is that he would like to start the 5 year look back on gifts for Medicaid qualifying in case he
or his wife require long term care as they age.<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">Does anyone have expertise in this area that would be willing to share a form for a Qualified Subchapter S Trust language?<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">Thanks,<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>
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<p class="MsoNormal"><span style="color:black">Jane G. Bitz <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Of Counsel <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Wolff, Hislop & Crockett, PLLC <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">12209 E. Mission Ave, Suite 5 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Spokane Valley, WA 99206-4824 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">(509) 927-9700 x126 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">FAX: (509) 777-1800 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"> <o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:12.0pt;color:#2F5496">THE CONTENTS OF THIS ELECTRONIC MAIL ARE CONFIDENTIAL AND PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE OR OTHER APPLICABLE PROTECTION.</span></i></b><i><span style="font-size:12.0pt;color:#2F5496">
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If you have received this electronic mail in error</u>, <b>PLEASE NOTIFY ME BY E-MAIL, FAX OR TELEPHONE and PROMPTLY DELETE</b> this electronic mail. This mail cannot be modified without express written consent of Wolff, Hislop & Crockett, PLLC. Thank You. </span></i><span style="color:black"><o:p></o:p></span></p>
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