Legal Question in Wills and Trusts in Washington

Scenario 1: Dad dies first. All property goes to mom through the Washington's Intestate Succession (Intestate means without a will). However, a non-citizen spouse can only inherit up to the estate tax exemption limit tax free (this year $3.5M). The unlimited estate tax marital deduction for transfers to non-citizen surviving spouses is disallowed, unless such property is placed in a qualified domestic trust (QDOT); A QDOT can be formed by the non-citizen spouse after the death of the citizen spouse.

You have to be careful, because life insurance value is considered to be in the deceased spouse's estate for valuation purposes.

Upon Mom's death, the children will inherit equally under intestate succession, any assets that are in the QDOT must pay estate taxes that would have been due upon Dad's death. Very complicated. But if Dad only transferred less than the $3.5M to mom, there is no estate tax due upon mom's death (unless she has more than $3.5M upon her death, then the tax is due upon the money over $3.5M, the first $3.5M is free of tax).

Scenario #2: Mom dies first. Dad being a US Citizen inherits everything tax free, using the unlimited marital deduction. Upon his death without a will, all goes to the children equally. If he has more than the exemption amount of assets upon his death, his estate would owe tax on the amount over the exemption amount.

Probate is merely the administration of someone's estate. Without a will, all estates must go through probate unless the total assets are less than $100K and there is no real estate, in that case, there is another procedure for disbursing the assets, although the distribution scheme is the same. In Washington, probate is fast and efficient.

I am sure that that was clear as mud. If you desire more information, please call or email my office for an appointment. [email protected]

Caroline R. Suissa-Edmiston