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<p class="MsoNormal">Dear Hive Mind:<o:p></o:p></p>
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<p class="MsoNormal">I am drafting a CPA for a couple as part of their estate planning. Estate is too small to be taxable. (~1.2M). I have a basic question:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Is there any disadvantage to using a CPA that is an agreement converting property to community property at death and vesting interest in the second spouse then, rather than a traditional three-prong CPA that converts all property immediately?
Have you ever had any problem with these?<o:p></o:p></p>
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<p class="MsoNormal">There is a template in the Deskbook. My first thought is that it would avoid many of the unintended consequences of entering into a CPA. (E.g. allocation of property on divorce, creditors’ ability to reach separate property).<o:p></o:p></p>
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<p class="MsoNormal">Kind Regards,<o:p></o:p></p>
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<p class="MsoNormal">Tom<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">--<o:p></o:p></p>
<p class="MsoNormal">Thomas H. White<o:p></o:p></p>
<p class="MsoNormal">(206) 552-8650<o:p></o:p></p>
<p class="MsoNormal">Attorney/Owner<o:p></o:p></p>
<p class="MsoNormal">King County Business Law<o:p></o:p></p>
<p class="MsoNormal"><a href="https://linkedin.com/in/LawGuy"><span style="color:blue">https://linkedin.com/in/LawGuy</span></a><u><span style="color:blue"><o:p></o:p></span></u></p>
<p class="MsoNormal"><a href="mailto:Thomas.H.White@KingCountyBusinessLaw.com"><span style="color:blue">Thomas.H.White@KingCountyBusinessLaw.com</span></a><u><span style="color:blue"><o:p></o:p></span></u></p>
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<p class="MsoNormal">NOTICE: This message and related data is intended only for confidential use by the designated recipients. The information may be legally privileged and should not be disclosed without approval of the sender. If you have received this in
error, please destroy this email and notify the sender immediately. Thank you for your assistance. Unless expressly stated herein, this communication is not to be used for avoiding federal tax penalties. IRS Circular 230.<o:p></o:p></p>
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