[WSBAPT] Funding a Credit Shelter Trust

[John Wickham]

Listmates:

Husband owns, as separate property, a parcel of raw land valued at $1 
Million on the date of marriage, 41 years ago.  Wife inherits $2 Million 
in cash 40 years ago, and builds a house on husband's land with her 
separate property funds, resulting in improvements valued at her death, 
now, of $1 Million.  No records remain to prove that it was wife's 
separate funds that built the house.  She has a credit shelter trust 
Will at death, and husband, PR of the estate, wants to segregate at 
least the $1Million in improvements on his parcel into the credit 
shelter trust, though on date of death the deed shows him as sole owner.

Can he simply deed a 50% interest in "his" $2Million dollar home 
(reflecting wife's $1Million contribution) to wife's estate, then as the 
PR, deed the estate's interest into the credit shelter trust?

Assume total estate of H&W is 3.5Million, so exposure to state estate 
tax is the main issue.

-- 
John D. Wickham
P.O. Box 893
Friday Harbor, WA 98250
360-378-7178
360-378-0849 Fax
  
This message is confidential, is protected by the attorney-client privilege and other privileges, and is intended for the exclusive use of the listed recipient(s).  If you have received this
message in error, please so indicate in a reply message to the sender and delete the contents of this message.  Any reproduction, use, or retransmission of this message, other than as specified
above, is prohibited.