[WSBAPT] Estate Tax Computation Question

[msafren at jennylinglaw.com]

Hello Folks,

 

I have an estate tax computation question - if anyone has had a similar set
of circumstances, please let me know how you addressed it.

 

Client named two residuary beneficiaries in will - 1) a trust for decedents
and 2) a charitable organization/ entity and divides the estate 85% /15%
between the trust and the charitable organization / charitable entity in the
residue of the estate.  

 

The value of estate exceeds the Washington estate tax threshold and as a
result, the estate must pay Washington estate taxes.  However, gifts and
donations to qualified charitable organizations are deductible from the
Washington estate tax.  

 

There seems to a catch-22, in this case because the charitable gift or
donation is a percentage or function of the total value of the estate,
rather than a specific amount or absolution value.  To compute the
Washington estate tax, one must know of the specific dollar amount that is
being gifted to the charitable organization- however to compute the gift to
the charitable organization, the estate taxes must be known, computed, and
paid.  The estate must therefore know the specific figure of 15% of the
estate for the charitable distribution, which is dependent upon knowing the
estate tax and the deduction for charitable contributions AND AT THE SAME
TIME know the estate tax and the deduction for charitable contributions,
which is dependent upon knowing the value of the estate.

 

If anyone has any experience with such a quandary, please let me know how
you resolved or solved it. 

 

Thank you!

 

Kind Regards,

Michael S. Safren, Esq.
Attorney at Law
 
<https://urldefense.com/v3/__https:/www.google.com/maps/search/14900*Interur
ban*Ave.*S.,*Ste.*280**A7C*Seattle,*WA*98168?entry=gmail&source=g__;KysrKysr
JSsrKw!!OrbN!Xw2ZhNS4nPycsjIaris22lUeChXKqfGddLln40DMumHRlXB3zTI2vTsmQtFW1uK
wTPWZtK0BpxRGTVT-Tchh_w$> 14900 Interurban Ave. S., Ste. 280 | Seattle, WA
98168
 
<https://urldefense.com/v3/__https:/www.google.com/maps/search/11900*NE*1st*
St.,*Bldg.*G*-*Ste.*300?entry=gmail&source=g__;KysrKysrKys!!OrbN!Xw2ZhNS4nPy
csjIaris22lUeChXKqfGddLln40DMumHRlXB3zTI2vTsmQtFW1uKwTPWZtK0BpxRGTVQQAikw2A$
> 11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005
P: (206) 859-5098 | E:  <mailto:msafren at jennylinglaw.com>
msafren at jennylinglaw.com
www.jennylinglaw.com | facebook.com/jennylinglaw/

 

This communication, including attachments, may contain information that is
confidential and protected by the attorney/client or other privileges. It
constitutes non-public information intended to be conveyed only to the
designated recipient(s). If the reader or recipient of this communication is
not the intended recipient, an employee or agent of the intended recipient
who is responsible for delivering it to the intended recipient, or you
believe that you have received this communication in error, please notify
the sender immediately by return e-mail and promptly delete this e-mail,
including attachments without reading or saving them in any manner. The
unauthorized use, dissemination, distribution, or reproduction of this
e-mail, including attachments, is prohibited and may be unlawful. Receipt by
anyone other than the intended recipient(s) is not a waiver of any
attorney/client or other privilege.

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20260427/b6b518f6/attachment.html>