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Dubuar, Lirhus & Engel LLP
206-728-5858
Only For The Married:
Community Property Agreements
Married couples in Washington State commonly use community property agreements to transfer property to the surviving spouse when the other spouse dies. This method of transfer is popular largely because it is done without probate.
To understand community property agreements, one must first know the difference between community and separate property. In Washington, property acquired by either husband or wife during the marriage will generally be community property. Property acquired by one of the spouses before marriage, or by gift or inheritance, will generally be that spouse's separate property.
The Washington community property statute allows us to change separate property to community, or vice versa, if the spouses agree in writing. The statute also permits a transfer of the community property at death to the surviving spouse.
Before you sign a community property agreement, you should be aware that community property agreements have limitations:
-
Will not pass property from the surviving spouse to a third person.
- Not effective if both spouses die together.
- Extremely troublesome if the
marriage is not stable.
- Unreliable for transfering title to
land in other states.
- May unintentionally increase
creditor's rights.
- May cause estate tax problems in larger estates.
A community property agreement is a marvelous tool for the simple transfer of property from one spouse to another. Many surviving spouses have stayed out of the probate court by use of the community property agreement. However, such agreements are not the beginning and the end of an estate plan. Community property agreements have their place and should be considered as a part of a married couple's comprehensive estate plan.
-Douglas J. Engel
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The information in this web site is all general information. The information is applicable only to the state of Washington, unless otherwise stated. This general information is not legal advice for your particular circumstances. If you have legal questions you should consult your lawyer.