FINAL BILL REPORT

HB 1350

                                   C 35 L 89

BYRepresentatives Inslee, Patrick, Appelwick and Winsley

Revising marital deduction gifts and survivorship requirements.

House Committe on Judiciary

Senate Committee on Law & Justice

SYNOPSIS AS ENACTED

BACKGROUND:

Under the federal tax code,  property that passes to a surviving spouse may be deductible for purposes of establishing taxes due on the estate of the deceased spouse.  Generally, in order to qualify for deductibility the property must vest in the surviving spouse within six months after the death of the deceased spouse.  The one exception to this general rule is allowed in the case of a creating instrument that vests the property in a spouse who survives a common disaster that results in the death of the other spouse.

The state's statutes on probate and wills provide for marital deduction gifts and impose the general six month vesting requirement.  However, there is no exception in state law for the so-called "common disaster" situation.

SUMMARY:

The law on marital deduction gifts is amended to reflect provisions in the federal tax code.  A gift may vest more than six months after the death of one spouse, and not violate the state's probate code, if the death was the result of a common disaster which the other spouse survived.

VOTES ON FINAL PASSAGE:

      House 95   0

      Senate    45     0

EFFECTIVE:July 23, 1989