[WSBAPT] out of state real property in an estate

[Diane J. Kiepe]

Are you saying the property is in Illinois but they were in Washington and bought it with what we would view as community funds?  Or did they live in Illinois at the time of purchase and the property is there too?

The general rule is community property gets a step up in basis as to the whole but I am not 100% sure this applies to "quasi community property".

RCW 26.16.220<http://app.leg.wa.gov/RCW/default.aspx?cite=26.16.220> defines quasi-community property but to be honest, I have never looked to see if the IRS adopts that concept.

Curious to see what others say.
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 Jenna Brozik
Sent: Thursday, February 23, 2023 3:11 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] out of state real property in an estate

Hello listmates,

I have a probate case where the property was bought by a married couple in 1993 with community funds in Illinois.  The property was only titled in the husband's name although it was bought by the community with community funds and remained community property.

The husband died in Washington State.  For IRS purposes, doesn't the wife get a step up in basis on the entire property, not just the 50% that is her community portion?  For the purposes of this discussion, the husband died without a will, so intestate.   Illinois is not a community property state, does that matter?

Any comments or suggestions would be appreciated.

Thank you,

Jenna Brozik
Managing Attorney
PRINZ & BROZIK PLLC
445 S. Grand Avenue
Pullman, WA 99163
509-338-0908 Telephone
509-338-3527 Facsimile

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