<html xmlns:v="urn:schemas-microsoft-com:vml" 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=iso-8859-1"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>Hi All: <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Disabled Wife transfers her share in real property via Quit Claim Deed to Husband in order to continue to qualify for public benefits. Then, sadly, healthy husband dies intestate. Only asset is the real property. Under intestacy laws, ½ of separate property goes to Wife and ½ goes to the adult kids. Luckily, the kids want to give their share of the estate in trust to a third-party special needs trust for the benefit of Wife (Trust 1). The Wife’s share of the estate will be going to a self-settled special needs trust (aka d4A Trust)(Trust 2). We will be signing a TEDRA Agreement explaining.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>QUESTION – Can the personal representative transfer the real property to the two trusts in a single step (one deed). Or, is it necessary or preferable to do this in two steps – first have the personal rep. transfer the property to the kids and then have the kids execute a second deed conveying their share to the trustee of the third-party special needs trust? Each of the kids will also need to file a gift tax return, correct? Any way to avoid this?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Thanks,<br>Margaret<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>--<o:p></o:p></p><p class=MsoNormal>Law Office of Margaret Delp<o:p></o:p></p><p class=MsoNormal>Mailing address:<o:p></o:p></p><p class=MsoNormal>PO Box 292<o:p></o:p></p><p class=MsoNormal>Langley, WA 98260<o:p></o:p></p><p class=MsoNormal>Physical Address:<o:p></o:p></p><p class=MsoNormal>2815 Howard Road, Second Floor<o:p></o:p></p><p class=MsoNormal>Langley, WA 98260<o:p></o:p></p><p class=MsoNormal>Telephone: 360-579-4530<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>