HOUSE BILL ANALYSIS

                  SB 5198

Title:  An act relating to updating the probate and trust law to comport with Internal Revenue Code language.

Brief Description:  Comporting with Internal Revenue Code language.

Sponsors:  Senators Johnson and Kline.

                    Brief Summary of Bill

CMakes a technical change to the statute governing marital deduction gifts in probate and trust law.

HOUSE COMMITTEE ON JUDICIARY

Staff:  Trudes Hutcheson (786-7384).

Background:

Under the Internal Revenue Code (IRC), every person is given a tax credit that can be used against federal estate taxes.  Because the credit is calculated as a credit against the total tax due for gifts made during the person's life and gifts made at the person's death combined, it has sometimes been  referred to as the "unified credit."

Washington's statute governing marital deduction gifts in trust and estate law refers to this IRC credit as the "unified credit."  However, the IRC does not use or define the term "unified credit," but simply refers to it as the "credit."

Summary of Bill:

A technical change is made to the statute governing marital deduction gifts in trust and estate law.  The word Aunified@ is removed from the term "unified credit" for the sake of consistency with the Internal Revenue Code.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

                 Office of Program Research