[WSBAPT] Community Property Agreement Effective At Death

[Thomas White]

Thank you all for responses on and off-list.

It appears the primary issue is that with a delayed CPA, the §1014(e) one-year rule blocks the use of the §1014(b)(6) community property rule that gives a full stepped-up basis to both parties’ interests in community property states upon the death of the first spouse. So in particular for separate property where the basis matters, such as real estate or stocks subject to capital gains tax, a future-effective CPA would be inappropriate.

Thank you also for the additional thoughts; I had already reviewed a number of other issues but appreciate the heads-up.

Kind Regards,

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