[WSBAPT] Part of the Gross Taxable Estate?

[Diane J. Kiepe]

Brent, you are correct.

Beneficiary designations do not remove assets from the taxable estate.  This is a common misconception.  The taxable estate is (generally speaking), every asset the decedent had an interest in at the time of his/her death, including payable on death assets (IRAs, Life Insurance, JWROS, etc.).  If there were not the case, planning to avoid tax would be much simpler.  The brokerage company should provide you with a date of death balance.  What they give you should be reviewed.  Many times brokerage companies just give you the closing values and for estate tax purposes, t he value is actually done by a mean formula.  If someone dies on a Saturday, Sunday or Federal Holiday, the formula is extended.

Once you calculate the estate, you need to review the tax payment provision of the Will (almost always residuary).

Brent, let me know if you want to visit on this.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Monday, October 3, 2022 5:19 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Part of the Gross Taxable Estate?

Greetings List -

Have a probate where Decedent set up beneficiary for his brokerage and his traditional IRA. The brokerage house disclosed the brokerage distribution but did not disclose the IRA. In a conversation with Executor believe each residual beneficiary received the same amount. If this is true - the estate would surpass the Washington estate tax threshold - if a traditional IRA transferred through beneficiary is counted as part of the GTE.

Simply by distributing outside of probate does not remove it from the gross taxable estate, correct?


Brent Williams-Ruth
Attorney-At-Law

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

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

500 S. 336th St., Suite 214; Federal Way, WA 98003

e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.williams-ruthlaw.com/> / facebook<http://www.facebook.com/bwrconsults> /

As of July 1, 2019 - I began operating as the Law Offices of Brent Williams-Ruth a division of BWR Consulting, PLLC. Please note the new points of contact Brent at Williams-RuthLaw.com<mailto:Brent at Williams-RuthLaw.com> and www.Williams-RuthLaw.com<http://www.williams-ruthlaw.com/>
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