[WSBARP] Estate Tax Avoidance

[Marvin Benson]

Hi Jim

They could give it away as to a charitable remainder trust,  or to an
irrevocable trust.  As far as I know, they can not then be a beneficiary of
the irrevocable trust to keep that out of the taxable estate.

The lifetime gift tax exclusion exceeds the value of their estate.  Their
choices are limited if they are unwilling to give up control or access to
their assets.

Marvin Benson

On Mon, May 10, 2021 at 12:48 PM Jim Doran <jim at doranlegal.com> wrote:

> 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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