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David
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<div>This is more and more common. A<br>
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<blockquote type="cite">On May 8, 2023, at 1:08 PM, David Faber <david@faberfeinson.com> wrote:<br>
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<div class="gmail_default" style="font-size:small">I'm working with clients who have a total of about $4mil in assets, about $2.5mil of which is held in a 401K that is, of course, held in just one spouse's name. The spouse who owns the 401K is highly likely
to outlive the death of the other spouse. The spouses want to use a credit shelter trust to avoid unnecessary estate taxes at the second death, so my thought was to use a Community Property Agreement with express inclusion of the 401K to equalize assets, then
at the death of the first spouse (if they die in the order we presume) we would use the Community Property Agreement and a disclaimer to shunt a portion of the 401K into the Credit Shelter Trust. Has anyone tried this method? We need a method of converting
some part into an inherited IRA at the death of the non-owner, and this should theoretically work, but I haven't been able to find any literature on the topic. I presume we might need a court order at the first death directing the division, which I do not
anticipate to be a problem, but I want to confirm whether anyone on here has used this method.</div>
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<div class="gmail_default" style="font-size:small">Thank you!</div>
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<div style="font-family:arial;font-size:small">Best,</div>
<div style="font-family:arial;font-size:small">David J. Faber</div>
<div style="font-family:arial;font-size:small">Faber Feinson PLLC</div>
<div style="font-family:arial;font-size:small">800 Polk Street, Suite B</div>
<div style="font-family:arial;font-size:small">Port Townsend, WA 98368<br>
(360) 379-4110</div>
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