[WSBAPT] QDOT Planning in Washington

[Paul H. Grant]

Jacob - I really like Sam's approach but this may take a dual trust situation. A revocable trust in case something happens sooner than later with a QDOT mixed in but a second irr trust for potential gifting that will provide far greater flexibility over the lifetime of the surviving spouse.  We don't talk about using a SLAT (spousal lifetime access trust) very often in a community property state, but this may be one situation where it could be applicable.

I forgot about the gifting limitations to a noncitizen spouse so this was a wonderful thread!

Sent from my iPhone ~ Paul H. Grant

> On Apr 3, 2016, at 1:41 PM, Jacob Menashe <jacob at hickmanmenashe.com> wrote:
> 
> Thanks for the late Friday thought. I hear you about becoming a citizen. But the reason I was thinking the clients would want to avoid a QDOT is, a) the principal could only be used if there’s the special need for the surviving spouse; and b) we’re buying a for sure tax liability, since the tax liability goes back to the deceased spouse, who used up all of his Washington exemption – as opposed to the surviving spouse being otherwise able to gift if she wishes to the gift – as Washington has no gift tax.
>  
> Best,
>  
> Jacob
>  
> From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Kate Szurek
> Sent: Friday, April 01, 2016 4:41 PM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] QDOT Planning in Washington
>  
> Hi Jacob:
>  
> I haven’t really been paying close attention to the responses you’ve been getting.  But in this situation my question is why not a QDOT?  They aren’t that hard to draft, and if the non-citizen spouse is the survivor and becomes a citizen within a relatively short period of time, you don’t need a QDOT anyway.  And with an estate that much over the Washington exemption, you need a trust which can shelter the first spouse’s exemption in any event. 
>  
> Just a late Friday throw it out there kind of a thought . . .
>  
> No foolin’!!
>  
> Kate
>  
> 
> Kate Szurek, J.D., LL.M.
> kate at skagitlaw.com
>  
> Skagit Law Group, PLLC
> P.O. Box 336 / 227 Freeway Drive, Suite B
> Mount Vernon, WA  98273
> 360.336.1000
> 360.336.6690 (fax)
> http://www.skagitlaw.com
>  
>  
>  
> From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jacob Menashe
> Sent: Friday, April 01, 2016 12:38 PM
> To: WSBA Probate & Trust Listserv
> Subject: [WSBAPT] QDOT Planning in Washington
>  
> 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
>  
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> Jacob H. Menashe
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