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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Jennifer,<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">It should be doable. I funded a credit shelter trust with large gaps in time, memorizing it with a TEDRA indicating the appropriateness of the same.
<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">The step up should not be too difficult because the tax code is clear that a step-up in all community property happens at the death of the first spouse. Most solid appraisers
(I don’t necessarily have a recommendation but I’m guessing you will get a name or two) will have access and use 2018 data to support the same. I would not worry about an IRS challenge; this client is not the person in this position and the proper support
should satisfy any IRS Agent.<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">While not completely helpful, keep in mind Code Section 121 will exclude 250K from the Capital Gains – no small savings for sure! Also, if getting hit with cap gains all
at once is not attractive, you can always consider an installment sale but most sellers aren’t interested.
<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">Does the home have to be sold for cash flow purposes – in my response I assumed it did.<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 I think of anything else I’ll pop back in.<o:p></o:p></span></p>
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<p class="MsoNormal"><i><span style="font-family:"Script MT Bold";mso-ligatures:none"><o:p> </o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold";mso-ligatures:none">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Douglas Eden, P.S.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">717 W. Sprague Ave., Suite 1500<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Spokane, WA 99201<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><a href="mailto:djkiepe@depdslaw.com"><span style="color:#0563C1">djkiepe@depdslaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">509-455-5300<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;mso-ligatures:none">KINDLY ALLOW 2-4 WORKING DAYS TO RECEIVE A RESPONSE TO NON-URGENT EMAILS. FEEL FREE TO SEND YOUR EMAIL (OR RESEND YOUR EMAIL AS THE CASE MAY BE) MARKED URGENT IN THE
SUBJECT LINE.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black;mso-ligatures:none">DISCLAIMER: the preceding message and any attachments may contain confidential information protected by law, the attorney-client privilege or other privilege. This communication
is intended to be private and may not be recorded or copied without the consent of the author. If you believe this message has been sent in error, REPLY to sender and then DELETE this message. Thank you. </span><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
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<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"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Jennifer L White<br>
<b>Sent:</b> Tuesday, August 1, 2023 10:06 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Retrospective Appraisal Needed in Thurston Co<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Good Morning Colleagues:<o:p></o:p></p>
<p class="MsoNormal">I am assisting a client with “cleaning up” matters discovered left undone after the death of the first spouse. The first spouse died in Dec 2018 and nothing was done to settle the estate (despite having a Will with mandatory credit shelter/QTIP
trust provisions – Argh! Sigh…., but not the issue I’m posting about today). Now the SS (age early 90’s) is going to be transitioning into a senior living community and the family home will be sold. This is waterfront property in Thurston Co and per the county
tax assessment, has roughly doubled in value between Dec 2018 and now ($800,000 to $1.5). I suspect that the tax assessed value is going to run behind FMV. This will bring significant capital gains taxes. And, no, they are not interested in keeping it to rent
and/or taking out a loan until SS passes. I am looking for a recommendation for a qualified appraiser that could do a retrospective certified appraisal back to date of death.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Any guesses on the likelihood of an IRS audit and the diligence needed to be ready to defend the step-up value if that day comes to pass? If my approach of getting a retro certified appraisal seems flawed to you, please explain why.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Any suggestions to pass along? <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks in Advance! <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Script MT Bold";mso-ligatures:none">Jennifer L. White, Esq.</span><span style="mso-ligatures:none">
</span><span style="font-family:"Script MT Bold";mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><img border="0" width="105" height="105" style="width:1.0937in;height:1.0937in" id="Picture_x0020_1" src="cid:image001.jpg@01D9C464.00A07630"></span><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><i><span style="font-family:"Arial Rounded MT Bold",sans-serif;mso-ligatures:none"><a href="mailto:jen@appletreelaw.com"><span style="font-style:normal">jen@appletreelaw.com</span></a><o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-family:"Arial Rounded MT Bold",sans-serif;mso-ligatures:none">2200 S 76<sup>th</sup> Ave<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial Rounded MT Bold",sans-serif;mso-ligatures:none">Yakima, WA 98903<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial Rounded MT Bold",sans-serif;mso-ligatures:none">509.225.9813<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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