[WSBAPT] out of state real property in an estate

[attorneytoner at earthlink.net]

I don’t have the answer, but I believe that the characterization of real
property depends on which jurisdiction it is in.  For instance, in Oregon,
my understanding is that real property owned by Washington spouses is not
community property,  even if purchased with community funds and with a
community property agreement, and the basis adjustment is a formula that and
is not an automatic adjustment on the whole property.  So caution is
warranted.

Eden Toner (retired)

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Heather de Vrieze
Sent: Thursday, February 23, 2023 5:44 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] out of state real property in an estate

 

Perhaps I’m missing something, but assuming the wife ends up with 100% of
this property, either she inherited 100% because it all belonged to husband,
so stepped up basis in 100% or she inherited ½ because it was community
property, and she owned ½ already. Then, as CP, she would get a step up in
basis. I can’t think of any reason this property would not have a new basis
equal to its fair market value at husband’s death.

 

Heather

 

Heather S. de Vrieze
Attorney-at-Law



3909 California Avenue SW

Seattle, WA 98116-3705                          

(206)938-5500 

 <mailto:heatherd at westseattlelaw.com> heatherd at westseattlelaw.com 

 <http://www.westseattlelaw.com/> www.westseattlelaw.com 

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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 Jenna Brozik
Sent: Thursday, February 23, 2023 3:11 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com
<mailto: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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