[WSBARP] Community property or not?

[Kary Krismer]

The issue I would have is would Washington consider the Oregon stock to 
be separate property AFTER the couple moves to Washington IF both 
spouses work in the corporate business AND IF they don't take an 
adequate salary for their efforts?  It's a conflict of law question I 
don't remember the answer to, but I think Washington might consider that 
stock CP on the right facts even though the corporation is based on 
Oregon (basically apply Washington law). That this is a question of the 
ownership of real property in Washington would be another reason for the 
court to apply Washington law.

If the stock were SP when the Washington real property was purchased I 
don't see any reason why the real property wouldn't have been SP at that 
time.  But if the status of that stock could have changed over time 
after moving to Washington, I don't see any reason the real property 
wouldn't change in status up to the point it was transferred into the 
husband's name.

Couldn't this all be dealt with by a QCD from H&W to H as separate 
property right before transfer into the trust?  Would W need separate 
counsel prior to signing that deed?

Kary L. Krismer
206 723-2148

On 1/26/2022 10:25 AM, Douglas Owens wrote:
> Dear Listmates, I ask for your views on these questions: H and W are Oregon residents, H owns all shares in an Oregon corporation that is in the construction business, corporation acquires real property in Washington which is financed with first and second mortgages, then spouses move to Washington, live in the house on the real property and the corporation transfers title to H “a married man” as a transfer exempt from REET as a mere change in form of ownership.  Is this property now community property?  H and W want to transfer into a trust which is not structured as a community property owning entity but it can be reformed.  Does H need formally to convey to the community before transferring into the trust?  Thank you for your help.  Yours truly. Doug Owens
>
> ***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
>
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp