Generally, the purpose that couples have in mind when entering into community property agreements is to avoid executing a will that requires probate proceedings. In some states where succession is excessively expensive and time-consuming, avoiding probate can be a good idea. In Washington State, however, the field is often relatively fast and inexpensive. In addition, there are several possible disadvantages and unintended consequences that can result from entering into a Community ownership agreement, often making it a poor choice as an alternative of will. For example, David and Martha each have children from a previous marriage. David and Martha were married in 1985. David and Martha both work outside the home and have accumulated $800,000 in community assets. Martha also has a $200,000 brokerage account from her first marriage, which she kept as separate ownership. Martha signs a will that leaves all her separate and community property to her children from her first marriage. Martha`s children inherit half of the community`s property ($400,000) and their separate property ($200,000).
Martha`s children from her first marriage inherit a total of $600,000. David will retain his half of the community property ($400,000). Community Property Agreements (“CPAs”) can offer estate planning benefits if they are designed for the affected couple. Each spouse may leave half of the property of the community and all its separate property to whomever he wishes. A community ownership contract merely converts individual property into community ownership; property does not exist for anyone. It is expected that all community property will automatically pass to the surviving spouse or domestic partner in accordance with the laws of filiation and distribution in the intete. Unlike a will, which is more flexible, a community ownership contract cannot be used to make binding gifts to people other than the surviving spouse or surviving domestic partner. If you divorce, how your assets are divided will depend on whether or not you live in a state belonging to the community. Since Washington is a state of communal property, it is assumed that all property acquired during marriage is communities and therefore belongs to the husband and wife. It doesn`t matter if the spouses are not residents of Washington, but as long as they acquire property during their marriage, it is considered community property. The spouses can enter into an agreement on their community property, including Washington real estate, which is then in their possession or will be acquired in the future to go into effect upon the death of one of the two. The net effect is to transfer U.S.
real estate from Washington State after a spouse has been handed over to the surviving spouse. Similarly, the agreement can achieve the same result for U.S. citizens, U.S. taxpayers, and/or Canadian citizens and non-U.S. citizens. Resident spouses who own “community real estate” in Washington State. If the personal representative follows the right steps in an estate proceeding in Washington, there is a strict requirement that creditors must file claims against the estate within 4 months, otherwise they will lose their claims forever. .