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<body class='hmmessage'><div dir='ltr'><BR><font color="#000000" size="2" style="font-size: 10pt;"> <p><font color="#000000" size="3">No, to tell the honest truth, we haven't solved it yet, so any thoughts would be helpful.</font><BR><font color="#000000"></font><font size="3"> </font><BR><font color="#000000" size="3">Thanks. </font><br id="FontBreak"><BR></font><br><br>
<div><pre><font size="1"><font face="Times New Roman,Times,Serif"><b><i>Lowell Dale Young, LLC </i></b></font><font color="#3366ff" face="Times New Roman,Times,Serif"><b><i>From Real Estate to Your Estate</i></b></font><b><i>
</i></b><font color="black" face="Times New Roman,Times,Serif"><b><i>Lowell Dale Young </i></b></font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif"><b>Advice to Real Estate Buyers & Sellers</b></font><font color="black" face="Arial Black,Geneva,Arial,Sans-serif"><b>
</b></font><font color="black" face="Times New Roman"><b><i>Attorney At Law </i></b></font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif"> </font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif"><b>Wills, Trusts, Estate Planning</b></font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif">
</font><font face="Times New Roman,Times,Serif">119 First Ave S. #200 </font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif">Probate and Avoiding Probate</font>
<font face="Times New Roman,Times,Serif">Seattle, WA </font>
<font face="Times New Roman,Times,Serif"><b><i>Mailing address</i></b></font><font face="Times New Roman,Times,Serif"><i>: </i></font><i>
</i><font face="Times New Roman,Times,Serif">P.O. Box 25510</font>
<font face="Times New Roman,Times,Serif">Seattle, WA 98165</font>
<font face="Times New Roman,Times,Serif">Phone: 206-364-0200</font>
<font face="Times New Roman,Times,Serif">Fax: 206-363-0663</font>
<font face="Times New Roman,Times,Serif">Website: </font></font><a href="http://www.ldyounglaw.com/" target="_blank"><font color="#0068cf" face="Times New Roman,Times,Serif" size="1">www.ldyounglaw.com</font></a>
</pre></div><br> <p><BR><div><hr id="stopSpelling">From: john@cairn-law.com<br>To: wsbapt@lists.wsbarppt.com<br>Date: Wed, 14 Jan 2015 07:31:30 +0000<br>Subject: Re: [WSBAPT] IRA/community property/probate question<br><br>
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<div style="font-family: Calibri,sans-serif; font-size: 11pt;">Dale,<br>
Did you resolve this issue? If not, I have some thoughts (which may or may not be helpful).<br>
Thanks,<br>
John<br>
<br>
John Creahan<br>
Cairn Law, PLLC<br>
206-621-5848<br>
Sent from my phone</div>
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<span style="font-family: Calibri,sans-serif; font-size: 11pt; font-weight: bold;">From:
</span><span style="font-family: Calibri,sans-serif; font-size: 11pt;"><a href="mailto:lowelldaleyoung@msn.com">Dale Young</a></span><br>
<span style="font-family: Calibri,sans-serif; font-size: 11pt; font-weight: bold;">Sent:
</span><span style="font-family: Calibri,sans-serif; font-size: 11pt;">ý1/ý9/ý2015 2:38 PM</span><br>
<span style="font-family: Calibri,sans-serif; font-size: 11pt; font-weight: bold;">To:
</span><span style="font-family: Calibri,sans-serif; font-size: 11pt;"><a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@LISTS.WSBARPPT.COM</a></span><br>
<span style="font-family: Calibri,sans-serif; font-size: 11pt; font-weight: bold;">Subject:
</span><span style="font-family: Calibri,sans-serif; font-size: 11pt;">[WSBAPT] IRA/community property/probate question</span><br>
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<p class="ecxMsoNormal"><span style='color: black; font-family: "Calibri","sans-serif"; font-size: 10pt;'><font size="3" style="font-size: 12pt;"><strong>Listmates,</strong> here's one to get you reaching for your old copy of Harry Cross'
Community Property law review article. </font><br>
</span><span style='font-family: "Calibri","sans-serif";'><br>
<font size="3">It's the classic stepmother vs. child from the first marriage. </font>
</span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">Client is named as beneficiary of her recently deceased father's IRA account (incidentally she is also named as the PR in his will and is</font></span></p>
<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">his sole heir in the will to all of this property).<br>
</font><font size="3"> <br>
</font><font size="3">The father's surviving spouse (the client's stepmother) is also claiming the entire IRA account.<br>
</font><font size="3"> <br>
</font><font size="3">The IRA was opened after his marriage to the stepmother, but the source of the funds can be traced to reveal it was about 15% separate funds and 85% community funds. (by the way the funds came from an 40lk rolled over into the IRA, which
40lk was 85%/15% community vs. separate funds)</font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">The IRA beneficiary form says if a community property state is involved then the form naming someone other than surviving spouse as a beneficiary
has to have been signed by the surviving spouse. The surviving spouse had refused to sign as of the date of death.
</font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">. </font><font size="3"> <br>
</font><font size="3"><strong>RCW 26.16.030</strong> provides in part: <br>
</font><font size="3"> </font><font size="3"> (1) Neither person shall devise or bequeath by will more than one-half of the community property.<br>
</font><font size="3"> <br>
</font><font size="3"> (2) Neither person shall give community property without the express or implied consent of the other.<br>
</font><font size="3"> <br>
</font><font size="3"> </font><font size="3"> <br>
</font><font size="3">My view of community property is that each spouse owns half, unless an agreement or court says otherwise, so in a person's will they</font><b><font size="3"> can</font></b><font size="3"> leave their 1/2 of community property to whomever
they choose.<br>
</font><font size="3"> <br>
</font><font size="3"> However, an IRA is a nonprobate asset, not normally controlled by a will (unless it is a superwill, which this is not).<br>
</font><font size="3"> <br>
</font><font size="3"><strong>My conclusion </strong>is that the surviving spouse gets 100% of the community property portion of the account because the will has no effect upon the nonprobate asset. And, the beneficiary designation for the IRA account to
his daughter cannot control the community property portion of the IRA account.</font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">Therefore, the answer on who gets the money is just an accounting exercise to establish (1) what % of the invested funds were separate funds and
(2) how much the current balance is the earnings and accumulations on the separate portion and how much on the community portion??
</font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">Thus, the lions share of the account goes to the surviving spouse and the much smaller portion goes to the daughter?
</font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"><strong>Am I right so far??</strong></font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">Any comments would help.</font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">Thanks,
</font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3"> </font></span></p>
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<p class="ecxMsoNormal"><span style='font-family: "Calibri","sans-serif";'><font size="3">Dale Young</font></span></p>
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<pre><font size="1"><font face="Times New Roman,Times,Serif"><b><i>Lowell Dale Young, LLC </i></b></font><font color="#3366ff" face="Times New Roman,Times,Serif"><b><i>From Real Estate to Your Estate</i></b></font><b><i>
</i></b><font color="black" face="Times New Roman,Times,Serif"><b><i>Lowell Dale Young </i></b></font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif"><b>Advice to Real Estate Buyers & Sellers</b></font><font color="black" face="Arial Black,Geneva,Arial,Sans-serif"><b>
</b></font><font color="black" face="Times New Roman"><b><i>Attorney At Law </i></b></font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif"> </font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif"><b>Wills, Trusts, Estate Planning</b></font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif">
</font><font face="Times New Roman,Times,Serif">119 First Ave S. #200 </font><font color="#3366ff" face="Arial Black,Geneva,Arial,Sans-serif">Probate and Avoiding Probate</font>
<font face="Times New Roman,Times,Serif">Seattle, WA </font>
<font face="Times New Roman,Times,Serif"><b><i>Mailing address</i></b></font><font face="Times New Roman,Times,Serif"><i>: </i></font><i>
</i><font face="Times New Roman,Times,Serif">P.O. Box 25510</font>
<font face="Times New Roman,Times,Serif">Seattle, WA 98165</font>
<font face="Times New Roman,Times,Serif">Phone: 206-364-0200</font>
<font face="Times New Roman,Times,Serif">Fax: 206-363-0663</font>
<font face="Times New Roman,Times,Serif">Website: </font></font><a href="http://www.ldyounglaw.com/" target="_blank"><font color="#0068cf" face="Times New Roman,Times,Serif" size="1">www.ldyounglaw.com</font></a>
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