[WSBAPT] QDOT Planning in Washington

[John Creahan]

Jacob,
Are all assets CP? Were any assets converted from his SP to CP?
There is no unlimited gift tax marital exemption for gifts to non-US citizen spouses. Assuming she is a US resident, he can make annual gifts exclusion gifts to her of $135,000 or so (forget the exact amount). Converting his SP to CP constitutes a gift, and I assume that converting their CP to her SP would as well.
If their assets are CP, earned while married, I think they can move $270,000 from CP to her SP annually. Since she already owns ½ of that amount, the gift is only $135,000.
Hope this helps,
John

John Creahan
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John J. Sullivan
Sent: Friday, April 1, 2016 1:20 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] QDOT Planning in Washington

Assuming the $5 million is CP, he only has to convert $500K of his share to her SP.

Yes. There is no gift tax. Make sure it's segregated and stays her SP. he can even put it in an intervivos QTIP if he wants to control ultimate disposition and protect from her creditors.

John Sullivan

Sent from my iPhone

On Apr 1, 2016, at 12:37 PM, Jacob Menashe <jacob at hickmanmenashe.com<mailto:jacob at hickmanmenashe.com>> wrote:
The situation: Husband is a US citizen. Spouse is not. They are Washington residents and have $5,000,000. Can Husband, during life, give Spouse $1,000,000, and thus avoid a Washington QDOT since his half of the $4,000,000 left will just be $2,000,000. I’m scratching my head and thinking the answer is yes, but I doubt if it’s that easy. (And realize that may be the tenor of the responses I get!) All responses though are appreciated!

Thank you,

Jacob Menashe

_____________________________
Jacob H. Menashe
Hickman Menashe, PS
4211 Alderwood Mall Blvd., Suite 202
Lynnwood, WA 98036
(425) 744-5658 phone
(425) 744-6078 fax
Satellite Office in Bellevue
www.hickmanmenashe.com




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