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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">Hi Mark,</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">My take on this, without doing legal research that you can easily do and presumably already did, is that if Washington law does not directly address this precise issue, the following
analysis is (but of course đ) perfectly reasonable to propose, even if it means asking for the creation of new law by Washingtonâs courts:</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">1. The resolution has nothing to do with the Will, because the trust is already funded and cannot be undone. (However, if the Will had a remote contingent clause or something of the
like, then perhaps it is persuasive in step 2 onward.)</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">2. Washington law otherwise has various features that seem clearly intended to avoid escheat, including giving assets to step-relatives before to the state.</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">3. Washington law would otherwise in default distribute to the intestate heirs of someone involved. What other general rule exists that wouldnât be a total concoction of some person
or court?</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">4. I see no credible argument that the intestate heirs of the residual beneficiaries (if even distinct? đ”âđ«) are relevant given that they predeceased the child. The only two possible
sets of relevant intestate heirs are parent-testator-grantor and child-beneficiary, if I am following the facts properly. (But if facts lead elsewhere, see paragraph 7 below and buy lots of postage and envelopes to notice them all up.)</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">5. Hopefully the intestate heirs of the child and the parent are the same, except for the childâs other parent (and that other parentâs intestate heirs). (Other Parent is unaddressed,
and his/her assets are presumably not involved. So I infer s/he is not involved and probably NOT likely intended as a potential beneficiary of parent-testator-grantor here. If he/she is even possibly involved, then that must be factored in.)</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">6. If indeed Parent and Child intestate beneficiaries are otherwise the same, I vote the trustee identifies them and calculates the resultant intestate distribution; drafts and files
pleadings in the probate or trust matter (not sure of posture but same substantive outcome whatever the labels applied); notices them all up for a hearing; and then lets the court decide if this policy-based outcome is warranted. (Again please remember my
analysis assumes no CONTROLLING law exists.)</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">7. If Other Parent or his/her intestate heirs are even possibly involved, notice them up and let them argue why the intestate analysis should be ârunâ as to deceased child-beneficiary
instead of the original parent-testator-grantor.<span class="Apple-converted-space"> </span></span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">Some may argue Iâm over-complicating this by even addressing Other Parent of child-beneficiary. However, my entire point is that you are making new law; only our âcustom and practiceâ
of drafting remote contingency clauses by reference to the (here) parent-testator-grantor really justifies defaulting to that outcome here, without consideration of the non-frivolous (but ultimately probably not persuasive) argument that the CHILD is the one
who died holding beneficial interests that require SOME KIND of distribution that avoids escheat. And since we are making new law, why not run the analysis by reference to the childâs intestate heirs or even the childâs own will or trust distribution if child
left a will or trust?<span class="Apple-converted-space"> </span></span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">(Again, not ultimately persuasive (to me). But not frivolous at all. A simple general power of appointment mightâve landed all these assets in the childâs estate after all.)<span class="Apple-converted-space"> </span></span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">The voice is the first partner I worked for is in my head, especially as counsel to TRUSTEE: âGive notice to everyone and let the court decide; you shouldnât CARE enough to exclude
anyone even possibly interested. Do not convince yourself of the rightness of your view, Joshua, and hand someone a good argument that would have been frivolous or at least rejected if made earlier in the process after they were given notice. Besides, they
may do NOTHING, and then youâve really cut them off - voila!â</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">I hope this helps even a little bit analytically. Fun little Friday morning exercise â well, for me at least, over morning coffee, mentally drowning out the yelling of my two young
sons about socks or a basketball or a water bottle or all of those successively, not concurrently; only certain sentenced convicts are so âluckyâ as to have the misery all happen at once and be over with. (And, yes, apologies to anyone whose sensibilities
my latter reference may offend. One must still find levity in this world, and I do not mean to equate my freedom with othersâ imprisonment or any of that. Iâve just always been intrigued by how blithely news reports insert successively/consecutively or concurrently,
with barely an acknowledgement of the resulting difference between serving 23 years vs. 173 years or some such thing. But I, unsurprisingly, digress.)</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">Happy Friday!</span></p>
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<span class="s1" style="font-family:UICTFontTextStyleBody;font-weight:normal">Best, Josh<span class="Apple-converted-space"> </span></span></p>
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<div dir="ltr">Joshua D. McKarcher</div>
<div dir="ltr">McKarcher Law PLLC</div>
<div dir="ltr">537 6th Street</div>
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<div dir="ltr">(509) 758-3345</div>
<div dir="ltr">(509) 758-3314 (fax)</div>
<div dir="ltr">josh@mckarcherlaw.com</div>
<div dir="ltr"><a href="http://www.mckarcherlaw.com/">www.mckarcherlaw.com</a></div>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Mark Vohr <mcv@ohanafc.com><br>
<b>Sent:</b> Thursday, November 14, 2024 6:36 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Trust Remainder Beneficiaries
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">Here is one I have not had to deal with before. Seems like I should know the answer, but I donât, at least not so sure.
</span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif"> </span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">Parent creates testamentary trust.</span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">Surviving child beneficiary of the trust. Parentâs siblings remainder beneficiaries.</span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">Surviving Child subsequently dies after trust is funded â all the remainder beneficiaries (i.e. the parentâs siblings) predeceased the surviving child. Survival required for the remainder
beneficiaries to receive trust funds. If they donât, the trust does not say what happens to the remainder interest. The language of the testamentary trust is silent on what happens if none of the remainder beneficiaries survive child.
</span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">I always drafted around this possibility by, at least, going back to the parentâs heirs at law as determined as thought the beneficiary and the remainder beneficiaries died immediately prior
to the death of the parent, but this trust does not have any of that saving language. Basically, we hit a dead end as far as guidance from the trust.
</span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif"> </span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">In this instance, I think one then looks back at the parentâs will to see who would receive the estate had the child and the parentâs remainder beneficiaries immediately predeceased the parent.
Basically, that is likely what I would have drafted into the trust had I been the drafter (and assuming thatâs what the parent wanted). Maybe Iâm bias on my own solution. </span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">Any thoughts on this one?
</span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">Regards,<span style=""></span></span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif"> </span></p>
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<span style="font-size:16.0pt; font-family:"Times New Roman",serif">Mark</span></p>
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<b><span style="font-size:14.0pt; font-family:"Bradley Hand ITC"">Ohana Fiduciary Corp.</span></b></p>
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<b><span style="font-size:14.0pt; font-family:"Bradley Hand ITC"">A Washington Chartered Trust Company</span></b><span style="font-size:10.0pt; font-family:"Bradley Hand ITC""></span></p>
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<span style="font-size:12.0pt; font-family:"Calisto MT",serif"><a href="mailto:mcv@ohanafc.com"><span style="font-family: Calibri, sans-serif; color: rgb(5, 99, 193);">mcv@ohanafc.com</span></a></span><span style="font-size:12.0pt; font-family:"Calibri",sans-serif">
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