[WSBAPT] More than 2 step-ups in basis one one property?

[John Creahan]

It depends. I generally recommend simply changing an asset’s title in cases where a married couple has (presumptive) community property titled in their individual names. I might use a limited community property agreement in Ashley’s situation, particularly if it is a relatively new marriage, assuming the client wants to convert separate property to community (although the parties should consult separate counsel in that case).
I recommend against a “three-pronged” community property agreement which transfers assets at death – compared to a will, a three-pronged community property agreement has potentially significant disadvantages and no advantages that I am aware of.
Also, remember that the conversion of separate property to community is a gift from one spouse to the other. This is something to watch out for if the recipient spouse is not a US citizen.
Hope this helps,
John

John Creahan
www.cairn-law.com<http://www.cairn-law.com/>
Now located in the heart of Fremont
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103
206-578-5877


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Sharon Rutberg
Sent: Friday, April 21, 2017 1:32 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] More than 2 step-ups in basis one one property?

This is of interest. John, what is your preferred way to make that conversion? Using a community property agreement?

Sharon C. Rutberg, Attorney at Law
Salmon Bay Law Group, PLLC
1734 NW Market St.
Seattle, WA 98107
206-735-3177, ext. 2
sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>
Website: www.salmonbaylaw.com<http://www.salmonbaylaw.com>
Washington State Bar #47055
D.C. Bar #420576

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John Creahan
Sent: Friday, April 21, 2017 12:24 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] More than 2 step-ups in basis one one property?

Yes, if they converted wife's separate property into community property with her second spouse.

John Creahan
Cairn Law, PLLC
206-578-5877
Sent from my phone
________________________________
From: Ashley Raymond<mailto:ashleyraymondlaw at gmail.com>
Sent: ‎4/‎21/‎2017 12:15 PM
To: WSBA Probate & Trust Listserv<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] More than 2 step-ups in basis one one property?
Husband and wife own multiple properties as community property. Husband dies and property gets a step-up in basis. Wife remarries. 2nd husband dies. Can wife get another step-up in basis in the properties?

Ashley Raymond, J.D., LL.M.
Ashley Raymond, PLLC
707 S. Grady Way, Suite 600
Renton, WA 98057
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ashley at ashleyraymondlaw.com<mailto:ashley at ashleyraymondlaw.com>

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