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<p class="MsoNormal"><span style="color:#1F497D">In response to the numbered paragraphs:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo4"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">I do not understand the last sentence of paragraph 1. What amount would be pulled back in to Wife’s estate, and why?<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo4"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">I can’t see filing a Washington estate tax return for a California resident with no ties to Washington.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo4"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">3.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">I doubt that a TEDRA agreement would bind the Washington Dept. of Revenue, although I am not sure they have an interest here.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo4"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">4.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">Perhaps after the credit shelter trust is created in California, it could have its situs changed to Washington. That is an income tax matter that most likely does not change the estate tax consequences.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Phil Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Portland, OR<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Diane J. Kiepe<br>
<b>Sent:</b> Monday, March 02, 2020 3:28 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] California Bypass Trust<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">So, there a couple issues that you want to think about. <o:p>
</o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoNormal" style="mso-list:l2 level1 lfo3">It depends. The first thing you need to do is read the document. If it was a document that planned for funding up to the Federal exemption you are not limited by the state exemption in anyway. But then
when W dies that federal amount gets pulled back in and we don’t like that. <o:p>
</o:p></li><li class="MsoNormal" style="mso-list:l2 level1 lfo3">I would contemplate filing a protective WA State Return with a zero QTIP election and a 100% WA State Exemption and including the Federal Return for that.<o:p></o:p></li><li class="MsoNormal" style="mso-list:l2 level1 lfo3">Another thought is to read the document and see if you can change situs before any funding. Change the situs and then have all parties sign a TEDRA that might keep all interests protected but optimize state
tax planning matters.<o:p></o:p></li><li class="MsoNormal" style="mso-list:l2 level1 lfo3">I would consider not using CA law to govern the new trust and calling it a CA Trust – CA is trying all sorts of new ways to tax income and if you don’t relocate the situs of the trust I suspect they will
try to tax it’s income. Plus the accounting rules in CA are burdensome I hear. I am not licensed in CA.<o:p></o:p></li></ol>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">These are just some thoughts that pop into mind – always happy to dialogue.<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"><o:p> </o:p></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold"">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold""><o:p> </o:p></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<o:p></o:p></p>
<p class="MsoNormal">Douglas Eden<o:p></o:p></p>
<p class="MsoNormal">717 W. Sprague Ave.<o:p></o:p></p>
<p class="MsoNormal">Suite 1500<o:p></o:p></p>
<p class="MsoNormal">Spokane, WA 99201<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com"><span style="color:#0563C1">djkiepe@depdslaw.com</span></a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">
wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Lovie Bernardi<br>
<b>Sent:</b> Monday, March 2, 2020 3:15 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] California Bypass Trust<o:p></o:p></p>
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</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Dear Listmates,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">California resident, plans to move to Washington. Husband died, they had an A/B trust, total assets of couple approximately $13 million. Client’s California attorney calls to find out how much of husband’s share can be sheltered from Washington
estate tax if it put into a bypass trust in California prior to move. Is the amount sheltered from Washington estate tax limited to Washington’s exemption amount if surviving spouse is domiciled in Washington at the time of her death?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Lovie<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">Lovie L. Bernardi</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Flaherty & Bernardi, PLLC</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">3600 15<sup>th</sup> Avenue West #205</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Seattle, WA 98119</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">(206) 682-2616</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><a href="mailto:joni@sbfirm.com">lovie@fb-lawfirm.com</a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><a href="http://sbfirm.com/">http://fb-lawfirm.com</a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">**********</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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