[WSBAPT] duplex in trust converting to condos

[Heather Kolbly]

Hi All,

 

I have a unique situation (for me anyway) with a client who wants to place her duplex in a living trust to benefit herself and her daughter initially, and then the adult grandkids for their lives.  Client owns a duplex (one tax parcel #) and she is getting ready to have the two units separated into 2 condos (2 tax parcel #s) using a Condo Declaration (she’s doing that on her own without my help).  Client  currently lives in one unit and her adult daughter lives in the other.  When Client dies, she wants her unit to be rented out to a 3rd party and the rent collected for the benefit of her 3 adult grandkids.   She wants the duplex/condos held in trust and she and the daughter will be initial co-trustees, then daughter will be sole trustee after Client dies.   A professional trustee will likely take over after daughter eventually dies.  I guess my main starter question is about the property tax implications – I know there’s no property tax triggered by placing Client’s property in a living trust, but does anyone know if there is a prop. tax triggered by converting the duplex to 2 separate condos after the duplex is placed in trust?  If so, I am guessing it’s the same tax implication as it would be if the property was not in trust, but I’d like to be able to give the client some initial guidance on that if possible, and I’d like to learn more about it myself.  I’ve checked the WAC exemptions, and I don’t see anything addressing this so far.

 

Thanks for any help you can offer,

 

Heather Kolbly

 

 

Heather Tobin Kolbly

Mobile Attorney 

KOLBLY LAW FIRM, P.C.

Mail:  704 228th Ave. NE #122, Sammamish, WA  98074

Office:  (425) 522-4234 s Cell:  (425) 444-1888 

 <mailto:Heather at KolblyLaw.com> Heather at KolblyLaw.com

 <http://www.kolblylaw.com/> www.KolblyLaw.com

                           

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