In Washington, a Community Property Agreement (CPA) is a commonly used estate planning tool for married couples. Its primary purpose is to avoid probate on the death of the first spouse by providing that all community property passes automatically to the surviving spouse at death.
While a CPA can substantially simplify post-death administration, it does not eliminate the need for all estate administration steps, nor does it function as a full substitute for probate or trust administration in every circumstance. This article explains how estate administration works when a CPA is involved and clarifies what Agile Estate Planning supports in this workflow.
What a Community Property Agreement Does
A typical Washington CPA has three key components:
Characterization
All presently owned and future-acquired property is declared to be community property.Management During Lifetime
Each spouse retains equal rights to manage and control community assets during life.Disposition at Death (the “Third Prong”)
Upon the death of the first spouse, all community property passes automatically to the surviving spouse.
CALLOUT: It is this third prong that allows many married couples to avoid a full probate proceeding at the first death. Make sure that the CPA you're using has the "third prong."
What Happens at the First Death
Transfer of Community Property
Upon the death of the first spouse, the CPA can be used to transfer ownership of community assets to the surviving spouse without opening a probate estate, provided the assets are in fact community property and the CPA is valid and still in effect. Common examples include:
Bank accounts
Brokerage and investment accounts
Real property held in both spouses’ names
Other titled assets
Real Property Transfers
To transfer title to real property from both spouses to the surviving spouse:
The community property agreement must be recorded with the county recorder.
A certified copy of the death certificate must also be recorded. (REDACT personally identifying information, like social security numbers, mother's maiden names, etc.)
It is strongly recommended to record an affidavit confirming:
The CPA is still in effect
The marriage was not dissolved
The property was community property at death
No real estate excise tax is due on this transfer under WAC 458-61A-202(4), and recording is authorized under WAC 458-61A-202(8)(a).
Financial Institutions and Securities
Banks, credit unions, and transfer agents typically require:
A certified copy of the recorded community property agreement
A certified death certificate
An affidavit of lack of probate
These requirements are supported by RCW 30A.22.190(1) and RCW 11.02.120, which allow financial institutions to rely on a CPA for asset transfers.
What a Community Property Agreement Does Not Do
A CPA is often misunderstood as “no administration required.” This is incorrect.
A CPA:
Transfers title, but
Does not constitute full estate administration
Specifically, a CPA does not:
Pay creditor claims
Address separate property
Resolve beneficiary designations
File required tax returns
Marshal or inventory assets for reporting purposes
Provide court authority if disputes arise
In practice, many CPA-based estates still require limited administrative actions, even if no probate is opened.
Transfer at Death Is Not Full Administration
Using a CPA to transfer assets is best understood as a title-clearing mechanism, not a comprehensive settlement process. Key implications:
Creditors’ rights are not cut off
There is no court supervision or nonintervention authority
No statutory claim period runs
No personal representative is appointed
If the surviving spouse later dies, unresolved issues from the first death can complicate administration of the second estate.
When Additional Administration Is Required
Additional steps beyond CPA transfers may be necessary when:
The deceased spouse owned separate property
Assets are titled inconsistently with the CPA
A financial institution refuses to honor the CPA
There are creditor concerns
There are tax filing obligations
There is family conflict or ambiguity about ownership
In these cases, opening a nonintervention probate or using another formal administration process may still be appropriate.