[WSBARP] Estate Tax Avoidance
Rani K. Sampson
rani at overcastlaw.com
Mon May 10 16:11:34 PDT 2021
Oops. That's IRC 2033. Tax-law class was a long time ago.
Rani K. Sampson
Overcast Law Offices | Attorney
23 S Wenatchee Ave #320, Wenatchee WA 98801 | (509) 663-5588 x 6
From: Rani K. Sampson
Sent: Monday, May 10, 2021 4:10 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: FW: [WSBARP] Estate Tax Avoidance
Hi, Jim,
That TODD is revocable, which means it's not out of their estate. All I remember from my tax law class is IRS code 2036: Everything that you own or control at death is part of your estate and taxable.
Also - if you give away the house but still live there, the IRS will look at that with a squinty eye:
https://www.sgrlaw.com/think-you-can-give-away-ownership-in-a-home-and-continue-to-live-there-without-the-value-of-the-home-being-included-in-your-estate-think-again/
Rani K. Sampson
Overcast Law Offices | Attorney
23 S Wenatchee Ave #320, Wenatchee WA 98801 | (509) 663-5588 x 6
From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Jim Doran
Sent: Monday, May 10, 2021 12:45 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
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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