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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">David,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">If you just want to use the value and not the actual 401(k) plan asset for funding, I think there is a better way. It may be too early and maybe I haven’t had enough coffee
but if you want to talk about it over a call, I’d be happy to walk you through what we do in similar situations.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<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">djkiepe@depdslaw.com</a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></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>Derek Jensen<br>
<b>Sent:</b> Tuesday, May 23, 2023 6:14 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Using Community Property Agreement to Equalize Estate Assets in 401K to fund credit shelter trust<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="color:black">I think the income tax on accelerating $500k of income into the credit shelter trust will be more than the Washington Estate Tax Savings. <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:white"><span style="font-family:"Helvetica",sans-serif;color:#984806">Sincerely,</span><span style="color:black">
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<p class="MsoNormal" style="background:white"><span style="font-size:14.0pt;font-family:"Helvetica",sans-serif;color:#984806">Derek W. Jensen,
</span><span style="font-family:"Helvetica",sans-serif;color:#984806">JD, LLM</span><span style="color:black">
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<p class="MsoNormal" style="background:white"><span style="font-size:10.0pt;font-family:"Helvetica",sans-serif;color:maroon">Jensen Law Office, PLLC</span><span style="color:black">
</span><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="color:black">From:</span></b><span style="color:black"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Diane J. Kiepe <DJKiepe@depdslaw.com><br>
<b>Sent:</b> Monday, May 8, 2023 7:19 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Using Community Property Agreement to Equalize Estate Assets in 401K to fund credit shelter trust</span>
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<p class="MsoNormal">David <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">This is more and more common. A<o:p></o:p></p>
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<p class="MsoNormal">Sent from my iPhone<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">On May 8, 2023, at 1:08 PM, David Faber <david@faberfeinson.com> wrote:<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt">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.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt">Thank you!<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Best,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">David J. Faber<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Faber Feinson PLLC<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">800 Polk Street, Suite B<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Port Townsend, WA 98368<br>
(360) 379-4110<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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