[WSBARP] Estate Tax Avoidance

[Jim Doran]

Death and Taxes:

Married clients are getting old.  They want to know what they can do to
shelter their assets from inheritance tax here in Washington.  They have a
home worth $600,000.00 and financial assets of roughly $4,000,000.00.  When
we do the calculations the inheritance tax would be $301,050.00 upon the
death of the second spouse if they do not dispose of any of the assets.  We
need to shelter $2,407,000.00.

I have two questions off the bat.  All this talk of Transfer on Death Deeds
makes me wonder if they do a TODD will that keep the real property out of
the "estate" for purposes of the estate tax?  The second question is if
they make specific beneficiaries for $2,407,000.00 worth of their financial
investments, will that keep that amount out of the estate tax calculation?

And I do know that as a married couple they can gift $30,000 per year per
person, but they don't want to do that for personal reasons.

I am sure there are other ways to do this.  Any ideas that are not too
complicated would be appreciated.

I appreciate it.

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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