[WSBARP] Washington State Estate Tax

[Rick Hoss]

A Disclaimer Credit Trust works for your situation. Upon the first to die, the surviving spouse elects whether to disclaim a portion of the first to die’s estate to the Credit Trust. Often amounts over $2,193,000, but much to consider at that time. Disclaimed funds go into the Credit Trust. With no disclaimer there is no Credit Trust and the survivor receives those funds outright. The Credit Trust appoints the surviving spouse as trustee, and distributes the funds upon the survivor’s death to the first to die’s heirs. This is a simple, flexible way to take advantage of the first to die’s unified credit – so their collective estates receive two $2,193,000 exemptions. If you leave all to the surviving spouse they will lose the first to die’s credit exemption.

 

 

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jim Doran
Sent: Monday, November 25, 2019 1:16 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Washington State Estate Tax

 

Dear Estate Attorneys:

 

Generally I do not have clients with an estate over $2.193 million.  Now I do.

 

I am preparing Wills for both spouses.  They want me to do something in the Will so that at the time of death of the second spouse there is a method that will give the Personal Representative the opportunity to put funds into a trust of some sort in order to avoid the estate tax.  

 

Does this transfer to a trust have to be done before the death of the second spouse?  (I think so.)  Or can it be done like a "Testamentary Trust, to occur upon the death.  

 

What is the simplest way to do this?  (I am willing to learn.....)

 

They do not want to gift very much to their not so responsible children.  

 

Jim Doran




James R. Doran

Attorney at Law

100 E. Pine Street -  Suite 205

Bellingham, WA 98225
(360)393-9506

jim at doranlegal.com <mailto:jim at doranlegal.com> 

www.doranlegal.com <http://www.doranlegal.com> 

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