[WSBAPT] objective is to avoid a probate

[Marcus Fry]

Why not place real property in revocable living trust and use POD designation for accounts? A simple RLT should be easy to do and rather inexpensive option given the situation. I don't think the transfer on death deed works because the property would be sold and under contract. An assignment after sale and prior to death would work but no step up in basis.



Sent from my Samsung Galaxy smartphone.


-------- Original message --------
From: Kristina Driessen <Kristina at rdattys.comcastbiz.net>
Date:05/28/2016 10:53 AM (GMT-08:00)
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Cc:
Subject: [WSBAPT] objective is to avoid a probate


I have a situation that I am trying to wrap my head around. It could be because it is a Saturday on a three day weekend that I am struggling and the answer is easy. But here goes….

I have a gentlemen who is terminally ill. I have drafted his estate plan which includes the only asset to be probated which is real property. All assets are to be sold with the proceeds going to his life partner. He has no children or other heirs.
Client now has a buyer who wishes to put a large sum down with monthly payments [$40,000.00 down]. Realizing that the client will not be around to collect the sums, he wishes to have the payments go to his life partner. [who is the beneficiary in the will].  He would like to avoid a probate and thus headache for his beneficiary. The sum remaining on the contract even with the down payment is approximately $160,000.00. This has not closed as of yet.

The end goal is to avoid a probate. At this point, could I assign the contract to his life partner before his death? I could quit claim it to his beneficiary, but am hesitant to do so because of her then having his basis in the property. I have also considered doing a transfer on death deed to his beneficiary and then she can enter into the contract with the buyer.

Any other suggestions or ideas?


Kristina A. Driessen
Ryan & Driessen
Attorneys at Law
16 A Street SE
Auburn, WA. 98002
(253) 939-0811
(253) 939-0471 fax
kristina at rdattys.comcastbiz.net

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