[WSBAPT] Exchange Agreement and Excise Tax

[Karin Treadwell]

Listmates:

In the case where an estate and surviving spouse agree to distribute 100% of real property to the spouse and equivalent value from a joint investment account to the credit trust, is excise tax triggered on the real estate transfer?

The assumption here is that decedent's probate assets pass to a credit trust via a mandatory funding formula.  However, to preserve the basis step-up on the surviving spouse's death, the goal is to use the exchange agreement to get the real estate to the surviving spouse.

Isn't there consideration here -- taking the transaction out of the standard inheritance exemption?

Thanks for any input.

Karin
Karin S. Treadwell
Sayre Law Offices
1320 University St
Seattle WA 98101
(206) 625-0092



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