HOUSE BILL REPORT

HB 1350

BYRepresentatives Inslee, Patrick, Appelwick and Winsley

Revising marital deduction gifts and survivorship requirements.

House Committe on Judiciary

Majority Report:  Do pass.  (15)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Brough, Dellwo, Hargrove, Inslee, P. King, R. Meyers, Moyer, H. Myers, Patrick, Scott, Tate and Wineberry.

House Staff:Bill Perry (786-7123)

AS PASSED HOUSE FEBRUARY 1, 1989

BACKGROUND:

Under the federal tax code, a 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 imposes 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 allow for a gift to vest more than six months after the death of one spouse if the death was the result of a common disaster which the other spouse survived.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Richard Klubucher, Michael Carrico, Washington State Bar Probate Section.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The bill will allow Washington citizens to take full advantage of federal tax laws.

House Committee - Testimony Against:      None Presented.