[WSBAPT] Parents need to disclaim?

[Philip N. Jones]

That is excellent advice.  A percentage penalty based on a zero tax is a zero penalty.  Yes, a return is legally required, but there is no penalty.  Letting the clients decide is the best thing.  Attorneys advise, not decide.
Phil Jones
Portland, OR

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Friday, February 28, 2020 11:52 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Parents need to disclaim?

Technically there is a gift tax filing, which would result (unless above the exclusion) of a use of some credit and zero tax owed.  Penalties and Interest on zero is zero.  I believe, once upon a time, there was a flat failure to file fee but our office hasn’t seen that in probably 30 years or more.

I explain the law to my clients and leave it up to them on if they file or not.


Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300


From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Paul Neumiller
Sent: Friday, February 28, 2020 11:45 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Parents need to disclaim?

Hi All, if the parents don’t sign a valid disclaimer, then, being deemed a gift, don’t the parents have to file a gift tax return if the gift exceeds $15,000.  And if that’s the case, wouldn’t it just be easier and cheaper for the family to just sign a disclaimer and be done with it?


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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Diane J. Kiepe
Sent: Friday, February 28, 2020 11:24 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Parents need to disclaim?

Mike,

A disclaimer will just prevent the money transfer from being a deemed gift to the other son.  Without a timely disclaimer, when the son takes, it as if the parents got it and then gifted it.  If the parents aren’t high net-worth people concerned with gift/estate tax at the federal level they could probably just have it go directly to the son.  I have done this recently in another context where siblings avoided a disclaimer.  We did do a TEDRA that recognized it could be a deemed gift from some to others but, again, based on current exemptions no one really cared.

Best of luck!


Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300



From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of michael at westseattleattorney.com<mailto:michael at westseattleattorney.com>
Sent: Friday, February 28, 2020 11:02 AM
To: WSBA Probate & Trust Listserve <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Parents need to disclaim?

Son died intestate and Parents waived right to be PR. They indicated that they don't need money and they wanted it to go to other son, who was appointed PR, and whom is next in line. I informed them that the needed to sign a disclaimer but they just wanted other son to inherit. RCW 11.86.031says "may be" .... . Are there legal, tax implications which also require filing of a disclaimer?
Mike Atkins

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