[WSBAPT] how to do non pro rata distribution of CP to get 100% of CP House into testamentary trust

[Chandra Lewnau]

I'm trying to determine the best way to fund 100% of a Decedent's CP house
into a SNT for the surviving spouse, effectively getting a non-pro rata
division of the community property and protecting as much of the assets in
the SNT as possible. Decedent’s Will leaves everything to a SNT for the
surviving spouse. But, there is very little probate property other than the
house. Almost all her other assets are either in retirement accounts with
beneficiary designations or in a JTWROS account. To fund the SNT with 50%
of the community property, I need to get 100% of the house into the SNT. I
know the whole of the community property is subject to probate
administration for things like paying debts and the family award, but I
don’t believe this extends to the power to convey the survivor’s interest
in the house. How do I get the surviving spouse’s interest in the house
into the SNT? I don’t want issues with a title company on a later sale and
I don’t want DSHS to look at the SNT as a partly self-settled trust.



The best idea I have so far is to have the surviving spouse quitclaim his
interest to the estate. If that works, what tax exemption do I use? WAC
458-61A-215(b)? "An heir to an estate gives the estate a quitclaim deed for
the purpose of removing any presumptive interest they have in the estate."
I looked at the exemptions for creating CP/establishing SP and for non-pro
rata distributions and they didn't seem quite right.


Should I back up whatever I do with a TEDRA agreement?



Any advice is appreciated.
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