[WSBARP] Washington State Estate Tax

[Jim Doran]

Does the Disclaimer Credit Trust get set up now or at the time of the first
spouse's death?

For instance, do they both specify in their Wills that a Credit Trust is to
be used upon their death if that would be of benefit?

Or do we set up a Credit Trust now?

Jim Doran


James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com
www.doranlegal.com


On Mon, Nov 25, 2019 at 4:16 PM Rick Hoss <rhoss at hctc.com> wrote:

> 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
>
> www.doranlegal.com
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