[WSBAPT] Estate Planning when spouses are residents of separate states

[Philip N. Jones]

Here's a trap to watch out for:


Query: what happens when the first spouse to die resided outside of Oregon and owned no tangible assets in Oregon, and thus filed no Oregon estate tax return, but made a federal QTIP election?  See Evans v. Dept. of Revenue, ___ OTC ___ (Docket No. TC 5335, 5/28/20).  In that case, the Oregon Tax Court held that when the decedent's wife later died a resident of Oregon, for Oregon estate tax purposes her estate included the value of the QTIP trust,  even though her husband had no ties to Oregon at the time of his death.  The opinion specifically declined to answer the question of whether the husband's estate could have elected out of Oregon QTIP status. The Oregon Supreme Court affirmed the decision of the Oregon Tax Court.  368 Or 430 (2021).  For a further discussion on this subject, see Jones, The Mobile QTIP, Oregon State Bar Estate Planning & Administration Section Newsletter, January 2021, and The Mobile QTIP - Part 2, Oregon State Bar Estate Planning & Administration Section Newsletter, September 2021.


Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Monday, November 14, 2022 9:45 AM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBAPT] Estate Planning when spouses are residents of separate states

Happy Monday list folk!

PC is a married couple with two careers. One of them has taken a job working for a company in the great state of Oregon. There is a home purchase, change of voter registration - the works. Spouse 1 is an Oregon resident. This is because their employer requires 3 days of "in office" work.

Spouse 2 works here in the great state of Washington. Has maintained the home in the Seattle area because their employer requires in-office work for two weeks per month. So Spouse 2 has just kept their status as a Washington resident.

I have never come across such a situation - is the answer that Spouse 1 needs to have an Estate Planning package done under the state where they reside and then the same for Spouse 2?

Thank you!
Brent

Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

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