[WSBAPT] duplex in trust converting to condos

[Bryce Dille]

I’ve done many of these conversions and there is no initial property tax consequence upon recording the Condo Declaration and Survey Map and Plans but when the assessor segregates the property into two tax parcels you can be assured that the combined assessed value of the two condo units will be more then it was when it was one tax parcel as a duplex  taxes will go up when the next tax statement goes out in 2016.

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Bryce H. Dille
Campbell, Dille, Barnett & Smith,  PLLC
P.O. Box 488
Puyallup, WA  98371
Voice:  253.848.3513
Fax: 253.845.4941
bryced at cdb-law.com<mailto:bryced at cdb-law.com>

Business Entity Creation and Management
Business, Government and Tax Law
Real Estate and Land Use, Residential, Commercial and Condominium Development
Real Estate and Commercial Transactions & Closings, Including Performing Services as IRS Section 1031 Exchange Facilitator
Estate Planning, including Wills and Trusts, and Probate Administration
Representation Homeowners/Condominium Association Real Estate Developments
Real Property Foreclosures and Forfeitures

From: wsbapt-owner at lists.wsbarppt.com [mailto:wsbapt-owner at lists.wsbarppt.com] On Behalf Of Heather Kolbly
Sent: Friday, January 16, 2015 11:21 AM
To: wsbapt at LISTSERV.NETHELPS.COM
Subject: [WSBAPT] duplex in trust converting to condos

From: Heather Kolbly [mailto:heather at kolblylaw.com]
Sent: Friday, January 16, 2015 7:20 AM
To: 'wsbapt at lists.wsbarppt.com'
Subject: duplex in trust converting to condos

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 • Cell:  (425) 444-1888
Heather at KolblyLaw.com<mailto:Heather at KolblyLaw.com>
www.KolblyLaw.com<http://www.kolblylaw.com/>

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