[WSBAPT] Delaware Tax Trap in Washington

[Jacob]

Hi All,

I am considering a situation where it may make sense to trigger the Delaware Tax Trap by exercising a limited power of appointment to create another limited power of appointment. This is to get estate tax inclusion for the trust and step up in basis at the first person’s death. I know in Washington we may not be doing this because we wouldn’t want to bring the trust into the first person’s death for Washington estate tax purposes. But I am thinking about a situation where a former Washington resident now resides out of the country. So, we shouldn’t have the Washington estate tax to worry about. But, on the other hand, I understand the lynchpin of the Delaware Tax Trap working is the restarting of the rule against perpetuities period, which is dependent on state law. So that will need to be considered too.

Is there someone still reading who might be willing to consult with me about this (on the clock of course)? Or who might have a comment about whether I might be missing something about the applicability of this for the situation I am considering?

Sincerely,

Jacob

Jacob H. Menashe
Hickman Menashe, PS
4211 Alderwood Mall Blvd., Suite 204
Lynnwood, WA 98036
(425) 744-5658 phone (ext. 102)
(425) 744-6078 fax
Satellite Office in Bellevue
www.hickmanmenashe.com

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