[WSBAPT] Deceased with assets in multiple jurisdictions

[David Moe]

Please respond to list.

http://dor.wa.gov/docs/forms/misc/affdvtdecstatedomicile.pdf
http://dor.wa.gov/content/findtaxesandrates/othertaxes/tax_estatetaxfaq.aspx#
Do I have to include out of state property on the estate tax return?
Yes. All property owned by a decedent must be included on the estate tax return. Once the estate tax is calculated on the entire estate, as if all property is in Washington, then a calculation is done to apportion the tax between the Washington property and the out of state property.
The decedent’s state of domicile at the time of death is what determines if property is in state or out of state property. For a Washington domiciled decedent any tangible personal property located outside of Washington and any real property located outside of Washington are considered out of state property. For an out of state domiciled decedent all intangible property, any tangible property located outside of Washington and any real property located outside of Washington are considered out of state property.
A decedent’s share of property or interest in a limited liability company (LLC), limited liability partnership (LLP), corporation, or other type of business entity, operating for a true business purpose, is considered an intangible asset and is allocated to the state of domicile. When one of these types of entities is used simply to hold property and does not operate for a true business purpose, then the location of the property is used to determine whether it is in state or out of state property.
For more details see the Estate Tax Apportionment for Out of State Property<http://dor.wa.gov/content/findtaxesandrates/othertaxes/tax_estatetaxOOS.aspx> page.

David Moe, Attorney
David L. Moe & Associates, P.S.
Telephone:  425-432-1277
Fax:  425-432-1280
Address:
22128 SE 237th
Maple Valley, WA 98038

Email:  davidmoe at maplevalleylaw.com<mailto:davidmoe at maplevalleylaw.com>
url:  http://www.maplevalleylaw.com<http://www.maplevalleylaw.com/>

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Marketa Vorel
Sent: Wednesday, April 27, 2016 10:59 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Deceased with assets in multiple jurisdictions

Dear list mates,

I would appreciate your take on whether Washington state estate tax may be due in the following scenario:

Deceased was a WA resident most of her life but lived in Colorado for the last 12 months and died there.  She had a trust in Colorado with assets exceeding $2.5M and a property in WA (owned by the Colorado trust).  Probate and trust administration opened in Colorado.

Deceased also has a Washington trust with life insurance proceeds just under $1M.

Does WA only consider the WA assets for estate tax liability purposes? Or, does WA look to the gross estate value (Colorado + Washington assets) to calculate Washington estate tax liability?

Thank you in advance for your thoughts.

M.

     Markéta Vorel

     Vorel Law
     206.799.0541
     marketa.vorel at gmail.com<mailto:marketa.vorel at gmail.com>
     www.vorellaw.com<http://www.vorellaw.com>
     1520 K Avenue || Anacortes, WA  98221

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