[WSBARP] JTWROS - Community Property question

Thu May 4 15:46:38 PDT 2023

Somewhere out there, whether at a seminar or else, I read that the IRS issued a ruling that in community property states, spouses, holding property as JTWROS received 100% step-up (or down) in basis on the death of the first joint tenant spouse.  

Jeff 

W. Jeff Davis

BELL & DAVIS PLLC

Attorneys at Law
P.O. Box 510

720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129 
Fax: (360) 683.1258 
email:  <mailto:jeff at bellanddavispllc.com> jeff at bellanddavispllc.com
 <http://www.bellanddavispllc.com/> www.bellanddavispllc.com

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Mark Vohr
Sent: Thursday, May 4, 2023 3:29 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] JTWROS - Community Property question

On some East Coast States, Massachusetts for instance, it is called “Tenants by the Entirety”  

Regards,

Mark

Mark C. Vohr, J.D. CPGC

Ohana Fiduciary Corporation

A Washington Trust Company

155 NE 100th St., Suite 209

Seattle, WA  98125

Telephone:  (206) 782-1189

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jennifer L White
Sent: Thursday, May 4, 2023 2:51 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] JTWROS - Community Property question

We need to lobby the WA legislature for deeds allowing Community Property with Right of Survivorship. AZ has this option. I have property there, and this seems to be the “default” for married couples unless you specifically ask for something else. 

To solve the issue of a CPA and marital dissolution, you can provide in your document that the filing of a petition for dissolution or legal separation voids the agreement. 

Jennifer L. White, Esq.                              

 <mailto:jen at appletreelaw.com> jen at appletreelaw.com

2200 S 76th Ave

Yakima, WA 98903

509.225.9813

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 Eric Nelsen
Sent: Thursday, May 4, 2023 2:40 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com <mailto:wsbarp at lists.wsbarppt.com> >; WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBARP] JTWROS - Community Property question

I agree, JTWROS works, but I generally avoid it as an EP mechanism because JTWROS is such a fragile state of title. Even some off-public-record events can be enough to sever the right of survivorship, if I remember correctly. And certainly it’s unilaterally severable by executing a quitclaim deed from “X to X, to hold as tenant in common and sever right of survivorship.” In contract, a Community Property Agreement is contractual and not unilaterally terminable, and can also apply to all property instead of just one particular parcel of real estate. If the parties sell and buy a new property, the CPA will cover the new property but otherwise they’d have to remember to take the new parcel as JTWROS.

Sincerely,

Eric

Eric C. Nelsen

Sayre Law Offices, PLLC

1417 31st Ave South

Seattle WA 98144-3909

206-625-0092

 <mailto:eric at sayrelawoffices.com> eric at sayrelawoffices.com

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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 Kira Rubel
Sent: Thursday, May 4, 2023 2:02 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com <mailto:wsbarp at lists.wsbarppt.com> >; WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> >
Subject: [WSBARP] JTWROS - Community Property question

Hey team - I don't know about the rest of you but I'm so tired of telling my surviving spouses that they have to do a lack of probate affidavit or, worse yet, a probate for the home they owned as community property! 

Assuming there is no living trust or community property agreement, am I correct that RCW 64.28.040 is the third workaround, in that it allows a married couple to hold title to real property as JTWROS and still get the full step-up in tax basis on the first death? If so, why don't I see more deeds held this way?  Is anyone else doing this? 

Kira M. Rubel, Esq.

*Licensed in CA and WA

8811 N. Harborview Dr. Ste. B
Gig Harbor, WA 98332-2174 
Tel.  (253) 358-2215

https://theharborlawgroup.com/ <https://urldefense.proofpoint.com/v2/url?u=https-3A__theharborlawgroup.com_&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=kDcM-fraYQNOZ1rCslLoMSSRXJQXmQVvRJbE6ymQGho&m=8aHcslug2YHx38N3IZjvM160RTY4VqitIqgLptcgVnE&s=G4rZsCeNOvdbCg7UWJVm0t3PEz20-G6QIXLghfTF6JA&e=> 

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