[WSBAPT] objective is to avoid a probate

Sun May 29 08:58:02 PDT 2016

I have been following this thread and it has led me to a question that I
hope someone will respond to.

A critical aspect of this is to get the stepped up basis to the significant
other.  I understand that the devisee will get the stepped up basis if the
owner dies while still owning the real estate and bequeaths it to the new
owner by some devise.  However, my question is, if the real property is put
into the RLT and then the trustor dies will the heir get the stepped up
basis even though the property was technically put into the trust?

My understanding was that the stepped up basis can occur with the use of a
Revocable Living Trust.   Is that right?

Jim Doran

James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com
www.doranlegal.com

On Sun, May 29, 2016 at 4:47 AM, Paul H. Grant <paulnnepa at gmail.com> wrote:

> If you use the RLT route, which I would favor, then be sure that the
> contract is also in the name of the trust so that the new trustee,
> presumably the life partner, would have control of not just the house but
> the contract as well. Then, you can think through who is the next
> beneficiary of the contract and the house proceeds if they keep it in the
> trust, plus you get the step-up
>
> Sent from my iPhone ~ Paul H. Grant
>
> On May 28, 2016, at 4:05 PM, Sara D. Longley <sara at longley-law.pro> wrote:
>
> The only way the property gets a step-up in value is if your client dies
> still owning it.  So, TOD deed is probably the way to go, and then the
> partner can sell to the friend/buyer.  POD designations on accounts should
> handle any other assets.
>
>
>
> Good luck, and my sympathies to your client and his partner.
>
> -Sara
>
>
>
> [image: header-black.gif]
>
> Sara D. Longley, J.D., LL.M.
>
> *Attorney at Law*
>
>
>
> 1734 NW Market Street
>
> Seattle, WA 98107
>
> (206) 434-5644
>
> Sara at longley-law.pro
>
> www.longley-law.pro
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [
> mailto:wsbapt-bounces at lists.wsbarppt.com
> <wsbapt-bounces at lists.wsbarppt.com>] *On Behalf Of *Kristina Driessen
> *Sent:* Saturday, May 28, 2016 11:57 AM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] objective is to avoid a probate
>
>
>
> The buyer is a friend who would wait. He is only buying it to help the
> seller feel comfortable about leaving a stream of income to his significant
> other. Same issue?
>
>
>
> Kristina
>
>
>
>
>
>
>
> Sent from my T-Mobile 4G LTE Device
>
>
>
> -------- Original message --------
> From: Justin Morgan <justin at tuohyminor.com>
> Date: 5/28/2016 11:19 AM (GMT-08:00)
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] objective is to avoid a probate
>
> Interesting.
>
>
>
> You could do a trust with your client as the first beneficiary, and the
> life partner as the remainder beneficiary. Then your client retains control
> during life.
>
>
>
> If you do a TODD it may mess up your real estate contract since the buyer
> is going towing everyone bound to the deal
>
> Sent from my iPhone
>
>
> On May 28, 2016, at 11:01 AM, Kristina Driessen <
> Kristina at rdattys.comcastbiz.net> wrote:
>
>
>
> 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 <kristina at rdattys.comcastbiz.net>*
>
>
>
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