Estate planning

[pb4uski]

Move.

+1 exactly what I was thinking.

 

[Sunset]

To continue the subject I could use some options on other methods of reducing WA state death tax. ABC trust or AB Qtip methods work for some, but in our case a significant amount >the non-portable state exemption can not be held in a trust more than 24 months (due to PS corp RCW 18.100- shares can only be held by one licensed in the profession). I am considering options to move the shares to an employee over time using RSU's, but the whole state tax code is difficult unless you just gift away your assets prior to death, the heirs gets to pay a lot of tax. WA is a community property state, so there is no tax between spouses if structured one way, but that removes the trust option for protection of future heirs, and does not help with the PS corp restriction on holding shares. I so far am not finding the right attorney local, any suggestions in WA?

Interesting as I have considered moving there, and didn't know about this. I see the exemption is approx $2.1 M and does not affect spouse.

Wow, I just found out IL has the same thing, the exemption is $4 M and spouses are excluded.

 

[Happyras]

+1 exactly what I was thinking.

Nice thought, but unfortunately in order to own the business in WA, you have to be a resident....gotcha. We are doing some succession planning, but to sell the business we could not invest in anything that yields as high a ROI.

 

[pb4uski]

You never mentioned residency before, just licensing... in my profession you can be licensed in a state without being a resident of the state... in fact, it is very common.

 

[Happyras]

You never mentioned residency before, just licensing... in my profession you can be licensed in a state without being a resident of the state... in fact, it is very common.

Yes this is true, I could get reciprocity in some states for my PE license, and still reside in WA, in fact I had many engineers I worked with with multiple licensing including foreign. However, in WA if you own a PS corp you must live in that state. It is separate from the licensing required. But you must also be licensed in the profession to own it. My wife is licensed, but so are our employees, but currently only my wife holds all the shares. I can't......