SENATE BILL REPORT

HB 1350

BYRepresentatives Inslee, Patrick, Appelwick and Winsley

Revising marital deduction gifts and survivorship requirements.

House Committe on Judiciary

Senate Committee on Law & Justice

Senate Hearing Date(s):March 16, 1989

Majority Report:  Do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Madsen, Newhouse, Niemi, Rasmussen, Talmadge.

Senate Staff:Richard Rodger (786-7461)

                  March 16, 1989

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, MARCH 16, 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Michael Carrico, WSBA - Probate Section (pro)