[WSBAPT] Community Property Agreement Effective At Death

[Thomas White]

Page 5-22 in the Community Property Deskbook.  The relevant language is “This agreement shall apply to all community property now owned or hereafter acquired by Spouses.  Any separate property of either, now owned or hereafter acquired, shall become and be considered community property upon the death of the Spouse owning said separate property. All community property covered by this agreement is referred to as the “subject property.””

The subject property then vests in the surviving spouse upon the death of either spouse.

--
Thomas H. White
(206) 552-8650
Attorney/Owner
King County Business Law
https://linkedin.com/in/LawGuy
Thomas.H.White at KingCountyBusinessLaw.com<mailto:Thomas.H.White at KingCountyBusinessLaw.com>

NOTICE: This message and related data is intended only for confidential use by the designated recipients. The information may be legally privileged and should not be disclosed without approval of the sender. If you have received this in error, please destroy this email and notify the sender immediately. Thank you for your assistance. Unless expressly stated herein, this communication is not to be used for avoiding federal tax penalties. IRS Circular 230.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Michael Atkins
Sent: Thursday, July 20, 2017 1:36 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Community Property Agreement Effective At Death

Please post

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Subject: [WSBAPT] Community Property Agreement Effective At Death
From: Thomas White <Thomas.H.White at KingCountyBusinessLaw.com<mailto:Thomas.H.White at KingCountyBusinessLaw.com>>
Date: Thu, July 20, 2017 1:11 pm
To: "wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>" <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>

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Dear Hive Mind:

I am drafting a CPA for a couple as part of their estate planning. Estate is too small to be taxable. (~1.2M).  I have a basic question:

Is there any disadvantage to using a CPA that is an agreement converting property to community property at death and vesting interest in the second spouse then, rather than a traditional three-prong CPA that converts all property immediately? Have you ever had any problem with these?

There is a template in the Deskbook. My first thought is that it would avoid many of the unintended consequences of entering into a CPA. (E.g. allocation of property on divorce, creditors’ ability to reach separate property).

Kind Regards,

Tom

--
Thomas H. White
(206) 552-8650
Attorney/Owner
King County Business Law
https://linkedin.com/in/LawGuy
Thomas.H.White at KingCountyBusinessLaw.com<mailto:Thomas.H.White at KingCountyBusinessLaw.com>

NOTICE: This message and related data is intended only for confidential use by the designated recipients. The information may be legally privileged and should not be disclosed without approval of the sender. If you have received this in error, please destroy this email and notify the sender immediately. Thank you for your assistance. Unless expressly stated herein, this communication is not to be used for avoiding federal tax penalties. IRS Circular 230.

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