[WSBARP] Estate Tax Avoidance

[Joshua McKarcher]

Jim,

I’m not following why they need to shelter so much if they have around $4.6 million. With even simple disclaimer planning they can protect around $4.4 million — though they must do so at the death of each spouse given that there is no portability as in the federal system.

But neither TODD or beneficiary designations will keep those assets out of their taxable estates.

Beyond that, best advice is to tread carefully and bring in the help of an estate planning expert if needed.

Hope that helps as a starting point. Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com
www.mckarcherlaw.com<http://www.mckarcherlaw.com>
________________________________
From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> on behalf of Jim Doran <jim at doranlegal.com>
Sent: Monday, May 10, 2021 12:50 PM
To: WSBA Real Property Listserv
Subject: [WSBARP] Estate Tax Avoidance

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<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>
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