[WSBARP] FW: Estate Tax Avoidance

[Roger Hawkes]

If done correctly the todd removes some right, since further action/happenings is needed to fully own it again.  So is there a difference in valuation?

Roger Hawkes, WSBA # 5173
Shoreline Office: 19944 Ballinger Way NE
                                Shoreline, WA 98155
Sultan Office:        423 Main
                                 Sultan, WA 98294

Phone: 206 367 5000; fax: 206 367 4005
Email: roger at law-hawks.com<mailto:roger at law-hawks.com>
Web site: www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Rani K. Sampson
Sent: Monday, May 10, 2021 4:10 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] FW: 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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