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<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>
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<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
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width=207 height=43><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>
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<DIV style="font-color: black"><B>From:</B> <A
title=michael@westseattleattorney.com>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>'WSBA Real Property
Listserv'</A> </DIV>
<DIV><B>Subject:</B> Re: [WSBARP] Estate Tax Avoidance</DIV></DIV></DIV>
<DIV> </DIV></DIV>
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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>
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<DIV id=divRplyFwdMsg dir=ltr><FONT style="FONT-SIZE: 11pt" color=#000000
face="Calibri, sans-serif"><B>From:</B> wsbarp-bounces@lists.wsbarppt.com
<wsbarp-bounces@lists.wsbarppt.com> on behalf of John J. Sullivan, Esq.
<sullaw@comcast.net><BR><B>Sent:</B> Monday, May 10, 2021 9:41
PM<BR><B>To:</B> 'WSBA Real Property Listserv'
<wsbarp@lists.wsbarppt.com><BR><B>Subject:</B> Re: [WSBARP] Estate Tax
Avoidance</FONT>
<DIV> </DIV></DIV>
<DIV lang=EN-US style="WORD-WRAP: break-word">
<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
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<P class=x_MsoNormal
style="FONT-SIZE: 11pt; FONT-FAMILY: calibri, sans-serif; MARGIN: 0in"><B>From:</B>
wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<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'
<wsbarp@lists.wsbarppt.com><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; 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>wsbarp-bounces@lists.wsbarppt.com</A>
<<A>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>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>
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<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>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>www.doranlegal.com</A></P></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV>
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