[WSBAPT] WA Estate Tax Determination - Inclusion or Exclusion of Bank Account

[John J. Sullivan, Esq.]

Matthew:

 

Assuming this is a JTWROS account I do not believe a completed gift has
occurred without the decedent having removed himself from the account while
alive. I probably would have prepared a "gift deed" to memorialize it. In
addition, depending on the size of the dead brother's interest a gift might
have triggered a Form 709 obligation to the IRS. 

 

My understanding is that a presumption of 50/50 ownership by two joint
tenants is presumed, rebuttable by evidence of unequal contributions. 

 

So while there was a gift, it was testamentary, not intervivos, as far as I
can see. 

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Matt Yates
Sent: Friday, May 29, 2020 4:07 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] WA Estate Tax Determination - Inclusion or Exclusion of
Bank Account

 

I have a probate action where PR is deferring to accountant about
determination of WA Estate Tax but there is an issue as to whether to
include the bank account decedent had with Decedent's Brother ("Brother").
I am trying to get PR to get appropriate information from bank as to how
account was "owned" but accountant is convinced that Decedent co-owned
account with Brother and, therefore, it was a gift to Brother.  Said another
way, it appears that accountant is trying to distinguish this account from a
typical survivor or beneficiary designated account and declare it as a gift
to get it out of the estate.  I did contact WA Dept of Revenue and the
representative I spoke to says that the Dept considers who deposited the
money in the account to determine whether it is part of the estate (i.e. if
Decedent deposited most or all, it is part of the estate).  

 

Accordingly, I have a few questions.

1.	Has anyone run into a scenario accountant wants to says exists where
a co-owned (this actually has yet to be determined) bank account was
considered a gift rather than a beneficiary designated account/survivor
account and thereby excluded from the estate for purposes of determining
value of estate and corresponding estate tax?  If so, what were the
indicators that Dept accepted to demonstrate gift, if any?
2.	Given how the Dept lists its rulings on its website (nondescript
volumes), does anyone know of an applicable ruling?  

 

Thanks and I'll continue to try to balance research with PR concerns about
overdoing it. 
Matt

 

Matthew D. Yates

Attorney at Law

Yates Marshall, PLLC

10000 NE 7th Avenue, Suite 200

Vancouver, WA 98685

Phone: (360) 449-6100

Fax: (360) 449-6111

matt at yatesmarshall.com <mailto:matt at yatesmarshall.com>  (New Email Address)

www.yatesmarshall.com <http://www.yatesmarshall.com> 

 

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