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<p class="MsoNormal"><a name="_MailEndCompose">Sharon,<o:p></o:p></a></p>
<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose">Their recent marriage creates the opportunity for a double step-up by treating it as community property. Conceptually this could be accomplished by amending the property agreement to say that effective
on the first death the residence is community property and that the community property is transferred to the surviving spouse. In practice you would probably to address other community property and estate planning objectives within the revised document.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose">Another advantage of their marriage that may actually be more valuable than the double step-up is the ability for qualified retirement plans to be rolled over to the surviving spouse. Of course
directing the retirement funds to the surviving spouse could thwart the ability of the first spouse to die to define their remainder beneficiaries. This problem would be amplified if the house was also transferring to the spouse outright instead of in a QTIP
or by-pass trust. Which brings us to the Washington State Estate Tax and the comparative rates with the Federal Capital Gains Tax (20% max vs 23.9% max).
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#984806">Sincerely,</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#1F497D"> </span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:14.0pt;font-family:"Helvetica",sans-serif;color:#984806">Derek W. Jensen,
</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#984806">JD, LLM</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#984806">Managing Attorney</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#1F497D"> </span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#1F497D"> </span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:#17365D"><img width="191" height="63" style="width:1.9895in;height:.6562in" id="yiv2260976817Picture_x0020_1" src="cid:image001.png@01D1FD22.E815C030" alt="New Logo.tif"></span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#1F497D"> </span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Jensen Law Office, PLLC</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">1833 N 105<sup>th</sup> St., Suite 301</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Seattle, WA 98133</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Tel: 206-</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:#990000">547</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">-1412</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Fax: (206)
</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:#990000">770-6524</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#1F497D"> </span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">8201 164th Ave NE, Suite 200</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Redmond, WA 98052</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Tel: (425) 698-2214</span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon"> </span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Find us on the web at:
</span></span><a href="http://www.jensenestatelaw.com/" target="_blank"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif">www.jensenestatelaw.com</span></span><span style="mso-bookmark:_MailEndCompose"></span></a><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:#1F497D"> </span></span><span style="mso-bookmark:_MailEndCompose"><span style="font-family:"Helvetica",sans-serif;color:black"><o:p></o:p></span></span></p>
<p class="MsoNormal" style="background:white"><span style="mso-bookmark:_MailEndCompose"><span style="font-size:8.0pt;font-family:"Helvetica",sans-serif;color:maroon">NOTICE: This e-mail message and all attachments transmitted with it may contain legally privileged
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<p class="MsoNormal"><span style="mso-bookmark:_MailEndCompose"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Sharon Rutberg<br>
<b>Sent:</b> Monday, August 22, 2016 4:22 PM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] joint tenancy property agreements<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hello, listmates –<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Does anyone out there have experience with “joint tenancy property agreements”? My clients, a same-sex couple, executed one some years ago, after buying a home together but before marrying or forming a registered domestic partnership. The
agreement recites that they hold their home as JTROS and spells out the amount of equity each would receive if they split up and sold the property.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">They married recently, and are updating their estate plan. I’d like to advise them of the pros and cons of keeping the JTROS and JT agreement vs. converting their home to community property. There could be a benefit as to getting a full
step-up in basis at the first death, but I want to understand any other ramifications.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks,<o:p></o:p></p>
<p class="MsoNormal">Sharon <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Law Office of Sharon C. Rutberg, PS<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">1734 NW Market St.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Seattle, WA 98107<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Website:
</span><a href="http://www.sharonrutberglaw.com/"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">www.sharonrutberglaw.com</span></a><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">206-409-2604<o:p></o:p></span></p>
<p class="MsoNormal"><a href="mailto:email@sharonrutberglaw.com"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">email@sharonrutberglaw.com</span></a><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Washington State Bar #47055<br>
D.C. Bar #420576<br>
<br>
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<p class="MsoNormal" style="margin-bottom:16.2pt;background:white"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">IRS Circular 230 Disclaimer: To ensure compliance with requirements imposed by the IRS, we inform you that to the extent this communication
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