What is an upgrade/downgrade provision?
An upgrade/downgrade provision is a law that applies in the state of Washington that affects how inherited property passes from one owner to the next. The law states that if a deceased person leaves property that was originally inherited from someone else, the property can be “upgraded” or “downgraded” to reflect the current market value. For example, if a person inherits a house that was originally purchased for $100,000 but is now worth $200,000, the beneficiary can choose to upgrade their inheritance to the current market value and receive the $200,000. Alternatively, if the house is now worth $80,000, the beneficiary can choose to downgrade their inheritance and receive the $80,000. In Washington, the upgrade/downgrade provision applies to all types of property, including real estate, stocks, bonds, and other assets. The law provides beneficiaries with the flexibility to choose the asset that best suits their current financial situation. The upgrade/downgrade provision also helps to ensure that inherited property is not taken advantage of and can benefit the beneficiary in their time of need.
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