[WSBAPT] disclaimer template

[Heather de Vrieze]

The other thing with an estate this size ($2.5million – not sure if that is decedent’s ½ or total) is that a disclaimer to avoid potential Washington Estate tax down the road can lead to capital gains tax.

I just settled an estate where the credit trust was funded in the early 2000’s with real property that more than doubled in value since funding. The total of the survivor’s estate plus the credit trust was about 1.75 million and there was a couple hundred thousand in capital gain the trust had to pay or distribute out to the heirs.

It is important to advise clients on the potential consequences of a disclaimer as well as a failure to disclaim.

Heather

Heather S. de Vrieze
Attorney-at-Law
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3909 California Avenue SW
Seattle, WA 98116-3705
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Mike Winslow
Sent: Thursday, July 16, 2020 9:49 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] disclaimer template

Many wills with Credit Shelter Trust provisions state that if the surviving spouse executes a disclaimer within the applicable period, then the disclaimed portion funds the CST, and is then managed under the CST. I would expect that to be the case in the will Jenna is inquiring about. She talks about disclaiming “into the Decedent’s trust” (which presumably is a form of CST).

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eden Rubenstein Toner
Sent: Thursday, July 16, 2020 9:29 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] disclaimer template

Roger is right.  A qualified disclaimer treats the disclaimant as though he/she predeceased the gift; therefore, it cannot be directed by the disclaimant.  And look at the anti-lapse statute for where the disclaimed property would go.

Eden Rubenstein Toner
Attorney at Law
21301 Hwy 410 E, #140
Bonney Lake, WA  98391
Phone 206-953-4485
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Roger Hawkes
Sent: Thursday, July 16, 2020 8:11 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] disclaimer template

Jenna: be very, very careful with that.  The disclaimer statute states what a disclaimer accomplishes.  I don’t believe it allows the disclaimant to direct what happens to the inheritance disclaimed.

Roger Hawkes, WSBA # 5173
Shoreline Office: 19944 Ballinger Way NE
                                Shoreline, WA 98155
Sultan Office:        423 Main
                                 Sultan, WA 98294

Phone: 206 367 5000; fax: 206 367 4005
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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 Jenna Brozik
Sent: Wednesday, July 15, 2020 4:30 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] disclaimer template

Hello Listmates,

One of my clients has a Living Trust with her husband.  The husband died a couple of months ago.  She would like to disclaim part of her estate into the "Decedent's Trust" to avoid estate taxes for their children.  There is about 2.5 million in the estate.  Does anyone have a disclaimer template they can provide me?

Thanks in advance,
Jenna Brozik
Attorney at Law
Prinz & Brozik PLLC
445 S Grand Ave
Pullman, WA 99163
(509)338-0908 / (509) 338-3527 (fax)
jennaprinzlaw at gmail.com<mailto:jennaprinzlaw at gmail.com>

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