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<font face="Times New Roman, Times, serif">Re. #2:<br>
Extract from pg 104 of Cross, The Community Property Law (Revised
1985), 61 Wash. L. Rev. 13:<br>
"It should be noted, however, that agreements making all future
acquisitions community property could be phrased to operate<br>
only at the time of death so that all assets would then be
transferred as ‘community property,’ whether or not otherwise
separate<br>
property, but the inter vivos character of the assets would remain
unaffected. Volz v. Zang and Neeley v. Lockton reveal the<br>
court's desire to give effect to the intention of the spouses,
and, therefore, the particular language of the agreement will be<br>
important. As to future acquisitions, the following differences in
phraseology should result in different conclusions about the<br>
inter vivos effect of the agreement:<br>
‘It Is Agreed, that upon the death of either of them such property
as they now own or may hereafter acquire from any source<br>
whatsoever, shall be considered as community property and shall,
upon such death immediately become the sole property of<br>
the survivor of them.’ 492<br>
This language should not affect the inter vivos character of a
subsequent acquisition of separate property, permitting such<br>
acquisitions to be managed and transferred as separate property
until death."<br>
<br>
Extract from pg 512-13 of Oltman and Reutlinger, The Statutory
Community Property Agreement as a Will Substitute on the Death of
the Second Spouse, 19 Gonz. L. Rev. 511 (1983/84)"<br>
"In In re Brown's Estate,7 the agreement converted the separate
property to<br>
community only at the time of death.8 The court did not comment<br>
on the timing of the conversion, permitting the converted property<br>
to be disposed of under the statutory agreement; as the statute
refers<br>
only to the transfer of community property at death, there is<br>
no direct restriction on a conversion of separate to community<br>
property also taking place at the time of death."<br>
</font><br>
<div class="moz-cite-prefix">On 11/10/2016 11:22 AM, Eric Reutter
wrote:<br>
</div>
<blockquote
cite="mid:CAF85q-bV1WwxbhmkzKjKchEcM-4P2o7oxEt8kyJii74_KuPA0g@mail.gmail.com"
type="cite">
<div dir="ltr">Hi listmates,<br>
<br>
I am working on a blog exploring the nuances and potential
applicability of Community Property Agreements to clients. I
would love to hear some practitioner input on two nuanced issues
I have been unable to resolve by research alone.
<div><br>
</div>
<div><b>1) Disclaimer Provisions in Community Property
Agreements</b></div>
<div>I have seen disclaimer provisions in community property
agreements that allow a surviving spouse to disclaim any
amount (some CPAs specify that the disclaimed amount shall
pass according to the deceased spouse's Will). Is this
disclaimer practice as simple as it sounds (i.e. build the
disclaimer provision into the CPA and build a disclaimer trust
provision into the decedent's Will), or are there any traps
here for the unwary?</div>
<div><br>
</div>
<div><b>2) Converting to Community Property At Time of
Agreements vs. At Time of Death</b></div>
<div>This issue has interested me the most, perhaps because I
have not found any clear guidance on this issue yet. The
background is that I have seen some community property
agreements that declare all property owned by spouses to be
community property at the moment of the agreement (I believe
that these are the typical "three pronged" agreements), and
then I have seen other agreements that do not effectuate the
conversion of property until the death of the first spouse to
die. </div>
<div><br>
</div>
<div>My gut reaction is to use the language that converts
property at death of the first spouse, rather than at the time
of the agreement, for three reasons. First, I have seen blog
posting from local family law attorneys that warn about the
potential negative effects of CPAs on division of property at
divorce. Second, the relevant statute, RCW 26.16.120 only
explicitly addresses transfers to take affect "upon the death"
of either spouse. Third, I cannot think of a benefit of
converting property at the moment of the agreement, if such a
conversion will take place upon death regardless.<br>
<br>
I feel like I must be missing something on this issue, since I
see so many agreements structured to convert property at the
moment of the agreement. <br>
<br>
I know you all are busy, and I appreciate any practitioner's
insight on this issue, as traditional research has failed to
yield me satisfactory answers to these questions at this
point. </div>
<div><br>
</div>
<div>Best regards,</div>
<div><br>
</div>
<div><br clear="all">
<div>
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<div dir="ltr">
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<div dir="ltr">
<div>
<div dir="ltr"><font face="garamond, serif"
color="#000000"><b>Eric Reutter, </b>Partner</font><font
style="font-family:'arial black',sans-serif"
color="#0b5394"> </font></div>
<div dir="ltr"><i
style="font-family:garamond,serif"><font
color="#000000">J.D., LL.M. Taxation</font></i></div>
<div dir="ltr">
<div style="font-size:12.8px"><font
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SE 36th Street, Suite 100</font></div>
<div style="font-size:12.8px"><font
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WA 98006</font></div>
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