[WSBAPT] Planning Opportunity?

Thu Jul 22 07:10:47 PDT 2021

I’m considering a situation in which the surviving spouse (the one doing the planning now who is not incapacitated) does not survive the incapacitated spouse by 120 hours (5 days).

I did not carefully research the issue before offering the idea via email, so if I’m wrong here, I trust someone can correct me. But I cannot think of a reason the 120-hour survivorship statute should not apply even in this situation. See RCW 11.05A, linked here: https://app.leg.wa.gov/RCW/default.aspx?cite=11.05A&full=true - and sub .040 in particular.

So, if even spouses must survive 120 hours to take under intestacy, which I’ve always understood they must, then my point is not to wait 5+ days to sign these papers — because if surviving spouse dies 121 hours after the first spouse, she/he will have inherited the entire estate (at hour 120) — and then will die with a taxable estate.

Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com
www.mckarcherlaw.com<http://www.mckarcherlaw.com>
________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Roger Hawkes <Roger at law-hawks.com>
Sent: Thursday, July 22, 2021 5:58 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Planning Opportunity?

Thanks, Joshua.  What is the significance of the ‘days’ parts of your statement?

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
Email: roger at law-hawks.com<mailto:roger at law-hawks.com>
Web site: www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Joshua McKarcher
Sent: Wednesday, July 21, 2021 10:07 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Planning Opportunity?

Wait for death and get step up in basis in all CP; plan now to have surviving spouse either disclaim immediately $x or x assets, or just make lifetime gifts (same outcome).

Draft now and have survivor sign one or other within 4 days of death.

If surviving spouse doesn’t survive 5 days you get two exemptions anyhow; if survives 6 days and dies, then the disclaimer or lifetime gift made 2 days earlier saves estate tax.

Then tell the kids they better save some of the money to take care of surviving parent or karma will get them! ;)

Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com<mailto:josh at mckarcherlaw.com>
www.mckarcherlaw.com<http://www.mckarcherlaw.com>
________________________________
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 Heather de Vrieze <heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>>
Sent: Wednesday, July 21, 2021 3:57:48 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Planning Opportunity?

Are there any simple ways to do tax planning estate planning (credit trust) in the following situation:

Couple long married

Only kids are joint and adults

All assets CP

One spouse lacks capacity and may die soon

No POA of course

Estate larger than WA exemption, smaller than Fed Exemption.

I expect were there a guardian appointed, it might be possible to get authority to create a trust, but there may not be time for that.

Any ideas?

Heather

Heather S. de Vrieze
Attorney-at-Law

[cid:image004.jpg at 01D77EBD.B81A9EB0]

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 months of July and August 2021, our firm will be open Monday through Thursday 8:30am to 5pm. We will be closed Fridays.

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