HB 1920 -
By Representative Hansen
On page 2, beginning on line 8, after "(4)" strike all material
through "(5)" on line 14 and insert "The legislature further finds
that: The Bracken decision held certain qualified terminable interest
property (QTIP) of married couples was transferred without incurring
Washington state estate tax liability, which: (a) Creates an inequity
never intended by the legislature because unmarried individuals did not
enjoy any similar opportunities to avoid or greatly reduce their
potential Washington estate tax liability; and (b) may create disparate
treatment between QTIP property and other property transferred between
spouses that is eligible for the marital deduction.
(5) Therefore, the legislature finds that it is necessary to reinstate the legislature's intended meaning when it enacted the estate tax, restore parity between married couples and unmarried individuals, restore parity between QTIP property and other property eligible for the marital deduction, and prevent the adverse fiscal impacts of the Bracken decision by reaffirming its intent that the term "transfer" as used in the Washington estate and transfer tax is to be given its broadest possible meaning consistent with established United States supreme court precedents, subject only to the limits and exceptions expressly provided by the legislature.
EFFECT: Makes revisions to the intent language.