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<p class="MsoNormal"><span style="color:#1F497D">Jared,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> Unfortunately I think the answer is “no” based on the following information I received from the Department of Revenue:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoPlainText">If the estate is <b>not required</b> to file the Federal Form 706, the estate may be able to elect alternate valuation on the Washington only filing. The election once made is irrevocable. Per
<a href="https://www.law.cornell.edu/uscode/text/26/2032">IRC §2032(c)</a>, there are two conditions to electing alternate value: 1) the value of the gross estate must decrease, and 2) the total tax due must decrease. If these two conditions are not met the
estate may not elect alternate valuation. When an estate does not file a Federal Form 706 then the Washington taxable estate is determined per
<a href="http://apps.leg.wa.gov/rcw/default.aspx?cite=83.100&full=true">RCW 83.100</a>,
<a href="http://apps.leg.wa.gov/wac/default.aspx?cite=458-57&full=true">WAC 458.57</a> and the IRC as it existed on January 1, 2005.<o:p></o:p></p>
<p class="MsoPlainText"> <o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">If the estate
<b>is required</b> to file a 706 <span style="background:yellow;mso-highlight:yellow">
(including for the portability election)</span> and wanting to elect alternate valuation, the estate must elect alternate valuation for both federal and state purposes. When an estate files a Federal Form 706 then the Washington taxable estate means the federal
taxable estate (see either </span><a href="http://apps.leg.wa.gov/rcw/default.aspx?cite=83.100.020"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">RCW 83.100.20(13)</span></a><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">
or </span><a href="http://apps.leg.wa.gov/wac/default.aspx?cite=458-57-105"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">WAC 458-57-105(3)(q)</span></a><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">).
</span><o:p></o:p></p>
<p class="MsoPlainText"> <o:p></o:p></p>
<p class="MsoPlainText">An estate has the option of filing a Federal Form 706 to take advantage of the portability election. If the estate chooses to file the Federal Form 706, then the Washington taxable estate must equal the federal taxable estate. If the
estate is unable to elect alternate valuation for federal purposes then the estate would not be able to elect alternate valuation for Washington filing purposes. <o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<font color="#777777" size="4"><span style="FONT-FAMILY: 'Calibri','sans-serif'"><font size="3"><font color="#000000"><o:p>
<p style="MARGIN: 0in 0in 6pt"><span style="FONT-FAMILY: 'Calibri','sans-serif'">Amy C. Lewis, Attorney</span></p>
<p style="MARGIN: 6pt 0in 0pt"><span style="mso-no-proof: yes"><v:shapetype id="_x0000_t75" coordsize="21600,21600" o:spt="75" o:preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"><v:stroke joinstyle="miter"></v:stroke><v:formulas><v:f eqn="if lineDrawn pixelLineWidth 0"></v:f><v:f eqn="sum @0 1 0"></v:f><v:f eqn="sum 0 0 @1"></v:f><v:f eqn="prod @2 1 2"></v:f><v:f eqn="prod @3 21600 pixelWidth"></v:f><v:f eqn="prod @3 21600 pixelHeight"></v:f><v:f eqn="sum @0 0 1"></v:f><v:f eqn="prod @6 1 2"></v:f><v:f eqn="prod @7 21600 pixelWidth"></v:f><v:f eqn="sum @8 21600 0"></v:f><v:f eqn="prod @7 21600 pixelHeight"></v:f><v:f eqn="sum @10 21600 0"></v:f></v:formulas><v:path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect"></v:path><o:lock v:ext="edit" aspectratio="t"></o:lock></v:shapetype><v:shape id="Picture_x0020_16" style="HEIGHT: 68px; WIDTH: 211px; VISIBILITY: visible; mso-wrap-style: square" alt="http://www.eisenhowerlaw.com/sites/www.eisenhowerlaw.com/themes/eisenhower/20150213_logo.png" type="#_x0000_t75" o:spid="_x0000_i1025"><v:imagedata o:title="EC_Logo_color" src="http://www.eisenhowerlaw.com/sites/www.eisenhowerlaw.com/themes/eisenhower/20150213_logo.png"></v:imagedata><img src="cid:logo8138b0" width="211" height="68"></v:shape></span><span style="FONT-SIZE: 3pt; FONT-FAMILY: 'Calibri','sans-serif'; COLOR: #c00000; mso-bidi-font-family: Calibri"><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span><font color="#c00000"><font style="FONT-SIZE: 10pt">ESTATE PLANNING & PROBATE</font></font></span></p>
<p style="MARGIN-TOP: 0in"><span style="FONT-SIZE: 11pt; FONT-FAMILY: 'Calibri','sans-serif'">1201 Pacific Avenue, Suite 1200 | Tacoma, WA 98402<br>
phone 253.572.4500 | fax 253.272.5732 | </span><a href="http://www.eisenhowerlaw.com/"><span style="FONT-SIZE: 11pt; TEXT-DECORATION: none; FONT-FAMILY: 'Calibri','sans-serif'; COLOR: #c00000; text-underline: none">www.eisenhowerlaw.com</span></a></o:p></font></font></span></font></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jared E. Adams<br>
<b>Sent:</b> Wednesday, August 10, 2016 5:21 PM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Alternate Valuation Date - Separate Elections?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hi Group,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">A quick question about a scenario I am sure some of you have run into before. I am administering an estate that is above the Washington exemption but below the federal exemption. I am required to file a state estate tax return, and taxes
will be due. In addition, the executor (surviving spouse) would like me to file the federal return to make the portability election.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The estate dropped significantly in value between date of death and the 6-month alternate valuation date. Because no federal tax is due, I know I have to use date of death values for the federal return. But, can I use the alternate valuation
date for Washington (even though I can’t for the federal), because for Washington it will reduce overall taxes payable? In other words, can I make separate alternate valuation date elections for federal and state similar to the right to make separate QTIP
elections?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks in advance for any feedback!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Best,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Jared<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy">Jared E. Adams, JD, LL.M.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy">Condie & Adams, PLLC<br>
611 4th Avenue, Suite A<br>
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(voice): (425) 450-1040 <br>
(fax): (425) 450-1041<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy">(email):
</span><span style="color:#1F497D"><a href="mailto:jared@condieadams.com"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">jared@condieadams.com</span></a></span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy">(web):
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<p class="MsoNormal"><b><span style="font-family:"Courier New";color:#1F497D"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-family:"Courier New";color:navy">Unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not
be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.<o:p></o:p></span></b></p>
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