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Hello:</div>
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My client ("Bob") is the PR and sole heir/beneficiary of his mother's estate. There is no surviving spouse and Bob has no siblings. </div>
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Mom's will (after some small cash gifts) gives Bob the residue of her estate. If Bob predeceases her, the residue goes to Bob's wife ("Jane"). There are no further contingent beneficiaries listed in the will. Bob and Jane have two children.</div>
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The estate's main asset is a ½ interest in real property, which will go to Bob under the terms of the will. Bob (personally) owns the other half. </div>
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Bob wants to gift this entire property to one of his children ("Child 1") but not the other ("Child 2"). Child 2 has minor children.</div>
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As I understand it, if a beneficiary disclaims an interest in an estate, they cannot direct where it goes; it's treated as though the disclaimant predeceased the decedent. So if Bob disclaims, the estate's interest in the house goes to Jane. If Jane also
disclaims, then the house would go in equal shares to Child 1 and Child 2. If Child 2 also disclaims, then the minor children would inherit. </div>
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It appears that the only way to get the Estate's interest in the house to Child 1 is for Bob to receive it himself, and then gift his entire interest to Child 1. </div>
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Neither transfer (estate to Bob, Bob to Child 1) appears taxable under WAC 458-61A. Child 1 may lose the potential for a stepped up basis on Bob's half of the property at Bob's death, but this is mitigated somewhat as the real property was purchased only 4-5
years ago. </div>
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After writing this message, I feel like I've overthought this and I am looking for a problem that doesn't exist. </div>
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Do any of my learned colleagues see a downfall to this approach? Thank you in advance.</div>
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<b>Peter D. Haroldson</b></div>
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<span style="font-family: "Segoe UI", sans-serif; font-size: 11.5pt; color: rgb(33, 33, 33);"> </span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 12pt; color: black;"><img style="width: 193.5pt; height: 44.24pt; max-width: 720px; min-width: auto; min-height: auto; margin: 0px;" height="58" width="258" id="x_Picture_x0020_1" data-outlook-trace="F:1|T:1" src="cid:cd4cba3b-8b0e-4d96-94db-09bbf67469aa"></span></p>
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<span style="font-family: "Times New Roman", serif; font-size: 12pt; color: rgb(33, 33, 33);"><b>PO BOX 530</b></span></p>
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<span style="font-family: "Times New Roman", serif; font-size: 12pt; color: rgb(33, 33, 33);"><b>Maple Valley, WA 98038</b></span></p>
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<span style="font-family: "Times New Roman", serif; font-size: 12pt; color: rgb(31, 73, 125);">Email:
</span><span style="font-family: "Times New Roman", serif; font-size: 12pt; color: blue;"><a style="color: blue; margin: 0px;" data-linkindex="0" title="mailto:peter@torresharoldson.com" class="OWAAutoLink" id="OWAb55ee831-65f8-4e22-6b64-8e8c85486d66" href="mailto:peter@torresharoldson.com">peter@torresharoldson.com</a></span></p>
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<span style="font-family: "Times New Roman", serif; font-size: 12pt; color: rgb(31, 73, 125);">Facebook:
</span><span style="font-family: "Times New Roman", serif; font-size: 12pt; color: blue;"><a style="color: blue; margin: 0px;" data-auth="NotApplicable" data-linkindex="1" title="https://fb.me/torresharoldson" class="OWAAutoLink" id="OWA483c0ce6-a880-c0b7-5f9d-0fc8c9981e89" href="https://fb.me/torresharoldson">fb.me/torresharoldson</a></span></p>
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<span style="font-family: "Times New Roman", serif; font-size: 12pt; color: rgb(31, 73, 125);">Phone: 425.458.3170</span></p>
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<span style="font-family: Calibri, sans-serif; font-size: 11pt; color: rgb(47, 84, 150);"><b><i> </i></b></span></p>
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<span style="font-family: Aptos, sans-serif; font-size: 12pt; color: rgb(47, 84, 150);"><b><i>Our office is located at 22520 SE 218th Street, Maple Valley WA 98038. Please send mail to PO BOX.</i></b></span></p>
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<span style="font-family: Verdana, sans-serif; font-size: 6pt; color: blue;"> </span></p>
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<span style="font-family: Verdana, sans-serif; font-size: 6pt; color: blue;">NOTICE:</span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: navy;"> </span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: black;">The
contents of this message, including any attachments, may be protected by attorney-client privilege, the work product doctrine or other applicable legal protections.</span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: navy;">
</span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: black;">If you are not the intended recipient or have received this message in error, please notify the sender and promptly delete the message. Thank you for your cooperation.</span></p>
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<span style="font-family: Verdana, sans-serif; font-size: 6pt; color: blue;">CLIENT ADVISORY:</span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: maroon;"> </span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: black;">
If you have not received a Reply to an e-mail message within forty-eight hours, please call our office to ensure receipt of your message.</span></p>
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<span style="font-family: Verdana, sans-serif; font-size: 6pt; color: blue;">IRS CIRCULAR 230 DISCLAIMER:
</span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: navy;"> </span><span style="font-family: Verdana, sans-serif; font-size: 6pt; color: black;">To ensure compliance with requirements imposed by the IRS, I inform you that any U.S. tax
advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code; or (ii) promoting, marketing or recommending to another
party any transaction or tax-related matter addressed herein.</span></p>
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