Z-427                 _______________________________________________

                                                    HOUSE BILL NO. 392

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Appelwick, B. Williams and Schmidt

Read first time 1/28/87 and referred to Committee on Judiciary.  Referred to Committee on Ways & Means 2/25/87.

AN ACT Relating to trust gift distribution; amending RCW 11.108.020; and adding a new section to chapter 11.108 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 107, chapter 30, Laws of 1985 and RCW 11.108.020 are each amended to read as follows:

          If a governing instrument contains a marital deduction gift, the governing instrument, including any power, duty, or discretionary authority given to the fiduciary, shall be construed to comply with the marital deduction provisions of the internal revenue code and the regulations thereunder in order to conform to that intent.  Whether the governing instrument contains a marital deduction gift depends upon the intent of the testator at the time the governing instrument is executed.  ((If the testator has adequately evidenced an intention to make a marital deduction gift, the fiduciary shall not take any action or have any power that may impair that deduction.  This section shall neither require nor prohibit a fiduciary from making the election referred to in section 2056(b)(7) of the internal revenue code.))

NEW SECTION. Sec. 2.  A new section is added to chapter 11.108 RCW to read as follows:

          Unless a governing instrument directs to the contrary:

          (1) The fiduciary shall have the power to make elections, in whole or in part, to qualify property for the marital deduction as qualified terminable interest property under section 2056(b)(7) of the internal revenue code.

          (2) The fiduciary making an election under section 2056(b)(7) of the internal revenue code may benefit personally from the election, with no duty to reimburse any other person interested in the election.  The fiduciary shall have no duty to make any equitable adjustment and shall have no duty to treat interested persons impartially in respect of the election.

NEW SECTION. Sec. 3.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.