[WSBARP] Transferring surviving spouse CP to a credit shelter trust?

[Sara Longley]

Hello listmates,

I am working on a probate where the Decedent established a testamentary trust for benefit of their surviving spouse.  We are funding the trust with a non-pro rata distribution of assets so that a whole parcel of real property (i.e. the interest held by Decedent and the interest held by the surviving spouse) is placed into the testamentary trust.  Of course we are doing a PR Deed to transfer Decedent's interest.  What is the proper way to transfer the surviving spouse's community property interest?

I would never have thought of having the surviving spouse do a separate deed, except that I happened to read an unpublished Division II case earlier this year in which a credit shelter trust was found to contain only the Decedent's interest in a property, and not the surviving spouse's interest.  If this is of interest, here it is: https://www.courts.wa.gov/opinions/pdf/58577-4.25.pdf

I am also interested to know how you would report the amount passing to the testamentary trust on the estate tax return — just the decedent's half, or the full value?  (And, if the full value, how do you state the math to explain it to the DOR?)

Many thanks in advance,
Sara


[cid:image001.png at 01DB0E74.D67AAA40]

Sara D. Longley, Attorney

(Main) 360.378.4450 ext. 107

(Direct) 360.468.7230

Slongley at pnwtaxlaw.com<mailto:Slongley at pnwtaxlaw.com>

www.pnwtaxlaw.com<http://www.pnwtaxlaw.com/>



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