[WSBAPT] net estate?

[Heather de Vrieze]

I would argue the following:

a) you need a date of death valuation of the property as-is. It will set the tax basis for any later sale.
b) if the estate pays for the repairs, the beneficiaries, even of .1% of the estate should benefit from the increase in value those repairs produce.
c) if the spouse pays for the repairs, the estate shoudlcalculate the .1% beneficiaries distribution based on the value of the estate at death, with no reduction for the cost of the work, and no increase based on the increase in value because the repairs were done.

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image005.jpg at 01D65B7A.3FA8E7A0]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
Click here to connect with de Vrieze | Carney on Facebook:   [FB Logo] <https://www.facebook.com/DeVriezeCarney>

For the latest information regarding firm operations and to see precautions we are taking in light of the Coronavirus crisis please visit our firm’s website, www.WestSeattleLaw.com<http://www.WestSeattleLaw.com>.
If I am sick, I will stay home, I ask you to do the same.


CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally privileged and/or confidential information.  If you have received this e-mail in error, please notify the sender immediately and delete all copies of this e-mail message and any attachment.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Krista MacLaren
Sent: Thursday, July 16, 2020 12:23 PM
To: wsba probate & trust <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] net estate?

Hi Folks,

I am representing a PR in her late husband’s estate.  The characterization of assets is a bit tricky in my mind at least - he had earned everything prior to their marriage, and he retired before they got married.  He did not add her name to anything, though he gave nearly everything to her in his will.  They were married just two years, but had lived together for 10.  I am viewing the assets as all his separate property.

In the will, he gave the residue of his estate .1% each to three people, and 99.7% to her.  At the time of his death, the house they lived in (his) was in serious disrepair.  The roof leaked, the foundation was dangerously cracked, the basement had flooded, it had never been painted in 40 years, original carpeting, etc.  She wants to stay in it, but if she had planned to sell it, I think she would have been told to fix the items I have listed.  She is fixing them now.  I am wondering whether I am on solid ground telling her that the estate value on which to calculate the gifts to the nieces and nephew is after all of those home fixing expenses?  I don’t really expect the relatives to make a fuss, but I do want to give her solid advice.  I have assumed it is appropriate to take the value after the expenses, because if the house were being sold, it would definitely have been fixed up before sale.

Thank you!

Krista J. MacLaren
Attorney at Law
Northgate Executive Center II
9725 3rd Ave NE, Suite 600
Seattle WA 98115
(206) 523-6116
kjm.inc at icloud.com<mailto:kjm.inc at icloud.com>

Please note, as with most email providers, Mac does not encrypt email messages. Accordingly, the confidentiality of messages sent to this address cannot be assured. This e-mail is intended for viewing only by the individual or entity to whom its content is addressed, and it may contain confidential or privileged information. If you received this email in error, please honor the privacy of the intended recipient: reply to the sender regarding the error and delete the message.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20200716/5d81bfe0/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 7107 bytes
Desc: image005.jpg
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20200716/5d81bfe0/image005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.png
Type: image/png
Size: 5137 bytes
Desc: image006.png
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20200716/5d81bfe0/image006.png>