[WSBAPT] Value of Life Estate in Probate Inventory

[Josh Grant]

I have a client who is PR of his dad’s estate.  There are some parcels which client’s earlier deceased mom gave to dad a life estate in her community half so I had planned on listing only dad’s 1/2 of ownership/value on the Inventory.  Client’s CPA suggested that the full value should be shown.  Mom and Dad died about a year apart so the values of each community 1/2 are about the same. I assume that there was a step up in basis and from a tax standpoint that the properties’ basis would so indicate.  However, for legal purposes because a life estate ends the instant of death, and the remainderman becomes the owner -  is not the correct inventory listing the 1/2 that the decedent owned? (and therefore the value would be also 1/2)?  This is not a taxable estate.
Joshua F. Grant

P. O. Box 619
Wilbur, WA 99185
509 647 5578
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