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<p>I would hope that the stepped up basis only goes away for estates
which are not taxed, such as surviving spouse, because that makes
some logical sense. Unless maybe the estate tax becomes taxable
based on the basis rather than the DOD value.<br>
</p>
<p><br>
</p>
<p>But as a practical matter, doing away with stepped up basis would
be an administrative nightmare. How do you determine the basis of
an asset when the person who bought the asset is dead and records
are not available? Determining the value on a certain date is
much easier.<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
206 723-2148</pre>
<div class="moz-cite-prefix">On 5/11/2021 10:25 AM, Josh Grant
wrote:<br>
</div>
<blockquote type="cite"
cite="mid:B2E0FA26FD144E78BBF83029F0E0B42B@JoshPC">
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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Calibri'; COLOR:
#000000">
<div><font size="4">and there is a good chance that the step
up in basis is going away. So we should see what happens
and then yes do the CLE</font></div>
<div> </div>
<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Calibri'; COLOR:
#000000">
<div dir="ltr">
<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Calibri';
COLOR: #000000">
<div><strong><span style="FONT-SIZE: 18pt; COLOR:
#004080">Joshua F. Grant</span></strong><span
style="COLOR: #004080"><br>
</span><span style="COLOR: black"><img
title="advocates" style="BORDER-TOP: 0px;
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inline; PADDING-RIGHT: 0px" alt="advocates"
src="cid:part1.DE291447.69CD4FE2@comcast.net"
class="" width="207" height="43" border="0"><br>
</span><span style="FONT-SIZE: 11pt; COLOR: #004080">P.
O. Box 619<br>
Wilbur, WA 99185<br>
509 647 5578</span><span style="COLOR: black"><o:p></o:p></span></div>
</div>
</div>
</div>
<div style="FONT-SIZE: small; TEXT-DECORATION: none;
FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal;
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<div style="FONT: 10pt tahoma">
<div> </div>
<div style="BACKGROUND: #f5f5f5">
<div style="font-color: black"><b>From:</b> <a
title="michael@westseattleattorney.com"
moz-do-not-send="true">michael
westseattleattorney.com</a> </div>
<div><b>Sent:</b> Tuesday, May 11, 2021 7:39 AM</div>
<div><b>To:</b> <a title="wsbarp@lists.wsbarppt.com"
moz-do-not-send="true">'WSBA Real Property Listserv'</a>
</div>
<div><b>Subject:</b> Re: [WSBARP] Estate Tax Avoidance</div>
</div>
</div>
<div> </div>
</div>
<div style="FONT-SIZE: small; TEXT-DECORATION: none;
FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal;
COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline">
<div style="FONT-SIZE: 11pt; FONT-FAMILY: "Times New
Roman", times, serif; COLOR: rgb(0,0,0)">Hi: How
about a CLE as this seems to come up a lot and with the
increases in equity and government trend to get it and
reduce the tax exemptions/deductions, we all could use a
course on use of such things as the A-B-C trusts, and
other tools in this area. But I mean a good focused CLE
using examples , hypos, form provisions and why. Just an
idea ! Mike Atkins </div>
<div>
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Roman", times, serif; COLOR: rgb(0,0,0)"> </div>
<div id="Signature">
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</div>
<div>
<div style="FONT-SIZE: 11pt; FONT-FAMILY: "Times New
Roman",times,serif; COLOR: rgb(0,0,0)"> </div>
<hr tabindex="-1" style="WIDTH: 98%; DISPLAY:
inline-block">
<div id="divRplyFwdMsg" dir="ltr"><font style="FONT-SIZE:
11pt" face="Calibri, sans-serif" color="#000000"><b>From:</b>
<a class="moz-txt-link-abbreviated" href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp-bounces@lists.wsbarppt.com"><wsbarp-bounces@lists.wsbarppt.com></a> on behalf of
John J. Sullivan, Esq. <a class="moz-txt-link-rfc2396E" href="mailto:sullaw@comcast.net"><sullaw@comcast.net></a><br>
<b>Sent:</b> Monday, May 10, 2021 9:41 PM<br>
<b>To:</b> 'WSBA Real Property Listserv'
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp@lists.wsbarppt.com"><wsbarp@lists.wsbarppt.com></a><br>
<b>Subject:</b> Re: [WSBARP] Estate Tax Avoidance</font>
<div> </div>
</div>
<div style="WORD-WRAP: break-word" lang="EN-US">
<div class="x_WordSection1">
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">Jim:</p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">Keep
in mind that if you gift a capital asset while alive
(real estate or securities) the recipient does NOT
get a step up in basis at death. So gifting should
ideally be of cash.</p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">John
J. Sullivan</p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<div>
<div style="BORDER-TOP: #e1e1e1 1pt solid;
BORDER-RIGHT: medium none; BORDER-BOTTOM: medium
none; PADDING-BOTTOM: 0in; PADDING-TOP: 3pt;
PADDING-LEFT: 0in; BORDER-LEFT: medium none;
PADDING-RIGHT: 0in">
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><b>From:</b>
<a class="moz-txt-link-abbreviated" href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp-bounces@lists.wsbarppt.com"><wsbarp-bounces@lists.wsbarppt.com></a> <b>On
Behalf Of </b>John J. Sullivan, Esq.<br>
<b>Sent:</b> Monday, May 10, 2021 9:38 PM<br>
<b>To:</b> 'WSBA Real Property Listserv'
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp@lists.wsbarppt.com"><wsbarp@lists.wsbarppt.com></a><br>
<b>Subject:</b> Re: [WSBARP] Estate Tax
Avoidance</p>
</div>
</div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">Jim:</p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">If
they are both citizens each enjoys a lifetime
exemption this year of $2.193M. So as long as you
design their wills/RLT to not waste the exemption of
the first decedent you are almost home. Also, WA has
no gift tax, so the second decedent can gift near
death. </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">A TOD
deed most certainly does not remove the real
property from either estate and could make it
difficult to implement the common “disclaimer trust”
strategy for capturing the first decedent’s lifetime
exemption. Same with the financial assets. The gross
estate includes everything the decedent had control
of at the moment of death. </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">The
$30,000 figure? I’m guessing you mean the $15,000
annual exclusion for each of them to any one
recipient from federal gift taxes. So they can gift
up to $30,000.00 to any one recipient together
without filing a gift tax return. But again, there
is no WA gift tax. <br>
<br>
All they need is a standard plain vanilla disclaimer
trust design that QTIPs the credit shelter trust for
federal purposes to secure a second step up in
basis. Every married couple plan should be able to
shelter up to $4,386,000 without doing anything
fancy or aggressive. They’re only $214,000.00 over
the combined threshold. Consider having the survivor
make gifts as near as death as necessary to assure
not running out of funds.</p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">I’m
coming to this late, so if anyone has already set
this out, I apologize for repeating.</p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in">John
J. Sullivan</p>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<div style="BORDER-TOP: #e1e1e1 1pt solid;
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none; PADDING-BOTTOM: 0in; PADDING-TOP: 3pt;
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PADDING-RIGHT: 0in">
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><b>From:</b>
<a moz-do-not-send="true">wsbarp-bounces@lists.wsbarppt.com</a>
<<a moz-do-not-send="true">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Jim Doran<br>
<b>Sent:</b> Monday, May 10, 2021 12:45 PM<br>
<b>To:</b> WSBA Real Property Listserv <<a
moz-do-not-send="true">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] Estate Tax Avoidance</p>
</div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><span
style="FONT-SIZE: 13.5pt">Death and Taxes:</span></p>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><span
style="FONT-SIZE: 13.5pt">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. </span><span style="FONT-SIZE: 18pt">We
need to shelter $2,407,000.00. </span></p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><span
style="FONT-SIZE: 18pt">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?</span></p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><span
style="FONT-SIZE: 18pt">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.</span></p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><span
style="FONT-SIZE: 18pt">I am sure there are
other ways to do this. Any ideas that are not
too complicated would be appreciated.</span></p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><span
style="FONT-SIZE: 18pt">I appreciate it.</span></p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><span
style="FONT-SIZE: 18pt">Jim Doran</span></p>
</div>
<div>
<p class="x_MsoNormal" style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"> </p>
</div>
<div>
<div>
<div>
<div>
<div>
<div>
<div>
<div>
<div>
<p class="x_MsoNormal"
style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri,
sans-serif; MARGIN: 0in">James
R. Doran</p>
</div>
<p class="x_MsoNormal"
style="FONT-SIZE: 11pt;
FONT-FAMILY: calibri, sans-serif;
MARGIN: 0in">Attorney at Law</p>
</div>
<p class="x_MsoNormal"
style="FONT-SIZE: 11pt; FONT-FAMILY:
calibri, sans-serif; MARGIN: 0in">100
E. Pine Street - Suite 205</p>
</div>
<p class="x_MsoNormal" style="FONT-SIZE:
11pt; FONT-FAMILY: calibri,
sans-serif; MARGIN: 0in">Bellingham,
WA 98225<br>
(360)393-9506</p>
</div>
<p class="x_MsoNormal" style="FONT-SIZE:
11pt; FONT-FAMILY: calibri, sans-serif;
MARGIN: 0in"><a target="_blank"
moz-do-not-send="true">jim@doranlegal.com</a></p>
</div>
<p class="x_MsoNormal" style="FONT-SIZE:
11pt; FONT-FAMILY: calibri, sans-serif;
MARGIN: 0in"><a
href="http://www.doranlegal.com"
target="_blank" moz-do-not-send="true">www.doranlegal.com</a></p>
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