What the rule says
Washington's community property agreement (CPA), authorized under Wash. Rev. Code § 26.16.120, is one of the most distinctive estate planning tools in American law. The CPA allows a married couple to execute a single document that:
1. Converts all of the spouses' property to community property. Both present property (including separate property each spouse currently owns) and future property (acquired after the agreement). 2. Specifies that all community property passes automatically to the surviving spouse at the first death. No probate is required for the transfer.
The combined effect: at the first spouse's death, all CPA-covered property — which is functionally all of both spouses' property after CPA execution — passes to the surviving spouse outside probate.
The CPA must be in writing, signed by both spouses, and acknowledged. Washington has no specific statutory form, but the document must clearly express the intent to convert property to community and direct automatic transfer.
What this means in practice
The CPA produces several distinctive Washington outcomes:
Probate avoidance for first death
When the first spouse dies, all CPA-covered property passes to the surviving spouse without probate. The surviving spouse establishes title through the CPA itself plus a death certificate, similar to a beneficiary designation. No personal representative, no court involvement, no probate fees.
Step-up in basis advantage
Under federal Internal Revenue Code § 1014(b)(6), both halves of community property receive a step-up in basis at the death of either spouse — the community property double step-up. By converting all property to community property through the CPA, the spouses ensure that all property benefits from the double step-up.
This is a significant tax planning advantage for couples relocating from non-community-property states. A couple from Illinois who moves to Washington and executes a CPA converts their previously-separate-property assets to community property, capturing the double step-up at the first death.
Surviving spouse's complete authority
After the first death, the surviving spouse owns the entire estate outright. There are no successor beneficiaries, no remainder interests, and no restrictions imposed by the CPA. The surviving spouse can dispose of the property freely during life or at death.
Limitations and risks
The CPA's broad scope and automatic transfer create some specific risks:
- All property goes to the surviving spouse. Not directly to children. If children are intended beneficiaries at the first death (e.g., to use the deceased spouse's estate tax exclusion through bypass trust planning), a CPA conflicts with that goal. - No protection against a surviving spouse's later remarriage. The surviving spouse can leave the entire combined estate to a new spouse, disinheriting children from the first marriage. Common estate planning concern in blended families. - No federal estate tax bypass planning. A CPA that gives everything to the surviving spouse uses the marital deduction at the first death but loses the deceased spouse's federal exclusion (without portability election). For estates above the federal exclusion ($13.99M in 2026), this can produce substantial tax cost. - Difficulty with creditor planning. Property in a CPA may be reachable by creditors of either spouse during life.
When CPAs work well
CPAs are particularly well-suited for:
- Mutual-children families where spouses want simple transfer to the survivor and trust the survivor to provide for the children. - Modest estates below federal estate tax thresholds where bypass trust planning is unnecessary. - Couples who relocated to Washington from non-community-property states wanting the community property double step-up. - Couples who prioritize simplicity over complex planning.
When CPAs don't work
CPAs are less suitable for:
- Blended families where each spouse has separate children to provide for at the first death. - High-net-worth couples facing federal estate tax exposure where bypass trust planning is essential. - Couples with concerns about a surviving spouse's later remarriage or transfers away from intended children.
Comparison to other estate planning tools
Washington couples have several options:
- CPA: Total property conversion + automatic transfer at first death. - Will only: Probate-based transfer per will provisions. - Revocable living trust: More flexible than CPA, allows for complex bypass trust and other planning, but more complex to establish and maintain. - Joint tenancy with right of survivorship: Asset-by-asset tool, similar concept to CPA but for individual assets. - Beneficiary designations: For financial accounts and life insurance.
Many Washington estate plans combine a CPA (for simplicity at first death) with a revocable trust (for complex planning at the second death and beyond).
Tax considerations
CPAs have several federal tax implications:
- Conversion of separate property to community property. This may be a taxable transfer for federal gift tax purposes if one spouse contributes more separate property than the other. Most CPAs are structured to avoid gift tax issues, but careful drafting is required. - Step-up in basis at first death. The double step-up advantage is the primary tax benefit. - No federal estate tax bypass. The unlimited marital deduction applies; the surviving spouse takes everything; the deceased spouse's federal exclusion is wasted (unless portability election is made).
What you can do about it
For married Washington residents considering a CPA:
- Determine whether a CPA fits the family situation. Most useful for mutual-children families with modest estates. - Engage a Washington estate planning attorney. CPAs are technical and benefit from professional drafting. - Coordinate with overall estate planning. A CPA addresses first-death transfers; second-death and complex planning typically require additional tools. - Consider blended family considerations. If each spouse has separate children, a CPA may not be appropriate. - File the federal portability election even with a CPA, to preserve the deceased spouse's exclusion for the survivor.
For blended families or high-net-worth couples, alternatives like revocable living trusts may be more appropriate.
Who this affects most
Washington community property agreements are most consequential for:
- Married Washington couples in mutual-children families - Couples who relocated from non-community-property states wanting the community property double step-up - Couples with modest estates below federal estate tax thresholds - Estate planners advising on Washington-specific tools that other states do not provide
The CPA is one of Washington's most distinctive estate planning tools. For families it fits well, the combination of simplicity, probate avoidance, and tax advantages makes it among the most cost-effective estate planning tools available. For families it doesn't fit (blended families, high-net-worth couples), alternative tools may produce better outcomes.