[WSBAPT] Equalization provision in a will?

[Brink, Kerry]

Yes - I think that is not uncommon.  If there may be a disproportionate share of pre-tax dollars distributed to beneficiaries, then you may want the calculation to be based on an after-tax valuation that can be summarized in the Will (i.e. "to the extent a beneficiary  received all or a portion of a pre-tax account, the value, for allocating the shares of my estate to beneficiaries, shall be reduced by the highest marginal income  tax rate in effect on my date of death ..." or something like that)even if beneficiaries are going to pull pre-tax accounts out over the beneficiary's lifetime.

Just a thought.

Best regards,
Kerry
Kerry E. Brink * Attorney at Law

Estate Planning, Probate, Elder Law

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Lisa E Schuchman
Sent: Tuesday, November 28, 2017 10:32 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Equalization provision in a will?

Has anyone used a provision in a will like the one below?  My clients have a lot of non-probate assets, including pre-tax retirement accounts that will eventually be used for their living expenses.  They'd like to make direct beneficiaries for the pre-tax funds but still have an overall plan based on percentages.  I'm trying to figure out if there is any reason this wouldn't work.

Equalization Provision.  It is my intent that the beneficiaries of my estate receive the proportional share of my residuary estate as provided in Article II, Section 2, taking into account both probate and non-probate assets that they receive as a result of my death.  Therefore, I instruct my Personal Representative to increase or decrease the proportional shares of beneficiaries under this Will to carry out, to the greatest extent possible, my wish that my beneficiaries share in my combined probate and non-probate assets in the proportions indicated.

Thanks.

Lisa E. Schuchman
206-960-4212
www.lisaschuchman.com<http://www.lisaschuchman.com/>

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