[WSBAPT] Equalization provision in a will?

[Heather deVrieze]

I include a similar provision in many of the Wills that I draft. I think it gets complicated if a beneficiary receives pre-tax retirement assets, and there could be disagreement about how to offset those against estate assets which have no income tax, but still think it is valuable. Ideally taxable assets will go to the main beneficiaries approximately equally.

A further complication can arise if the nonprobate assets are of significant size so that a nonprobate beneficiary receives more than their "share" under the will. In that case, I think it is important to clarify if reimbursement is or is not required.

Heather

Heather S. de Vrieze
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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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