[WSBAPT] Non-probate assets - Will - RCW 11.18.200

[Paul Neumiller]

On a practical matter, IF the non-probate asset was subject to estate taxes, how does that work?  Upon receiving a death certificate, doesn't a bank distribute the non-probate asset directly to the named beneficiary?  Assuming lack of beneficiary cooperation, how does a PR force a beneficiary to regurgitate the beneficiary's share of probate expenses?


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jade Coppieters
Sent: Monday, July 26, 2021 12:14 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Non-probate assets - Will - RCW 11.18.200

Hi Neli,
The estate tax apportionment statute provides: "To the extent that a provision of a decedent's will provides for the apportionment of an estate tax, the tax must be apportioned accordingly." RCW 83.110A.020(1)(a).

The beneficiaries of non-probate assets do take subject to liabilities, claims, and estate taxes under RCW 11.18.200, but if the testator has apportioned the taxes to the residuary under their will, then the residuary bears the tax.

Regards,
Jade Coppieters

J. M. Coppieters, Esq.
Phone: 206-236-1500
Fax: 306-905-5912

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 Neli Espe, J.D. - Olympic Legal
Sent: Monday, July 26, 2021 11:56 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Non-probate assets - Will - RCW 11.18.200

Dear List-mates,

WA estate is subject to WA estate tax. The Will states that estate taxes are to be paid out of the residue. The assets in the residue are sufficient to pay the estate tax.

Decedent left substantial investments accounts with POD/TOD designations. The probate and non-probate asset beneficiaries are not the same set of people.

RCW 11.18.200(1) states "unless expressly exempted by statute" ... a beneficiary of non probate asset  takes the asset subject to  ... estate taxes.

Question: Does the Will clause regarding payment of estate taxes out of the residue provide an exemption from RCW 11.18.200? Is there any other provision that I am missing?

Thank you
___________________________________
   Neli Espe, J.D., Olympic Legal
                360.630.3635
            olympiclegal.com<https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Folympiclegal.com%2F&data=04%7C01%7C%7Ca35b5d4f10434ec39a9f08d9506a15fa%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637629238840664703%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=%2Fqs74ZKHtxU1%2B072xJTzpbxaZMvKSN%2FUNQj3AfFQrG0%3D&reserved=0>
Estate Planning | Probate | Real Estate
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