[WSBAPT] objective is to avoid a probate

[Mike Winslow]

Read the thread. Agree with the RLT followed by installment sale.
This allows transfer of rights pursuant to trust terms without probate.
 
Check with tax counsel. May not need to wait until after death to avoid tax consequences if personal residence. Not up on current exemptions, but in past there were exemptions that would allow sale during lifetime without need to obtain step up in tax basis at death.  But if must wait, they could negotiate the sale now, complete the Purchase and Sale Agreement, do the Form 17 and related disclosures so in contract. With closing following death of client.
 
When doing an installment sale, recommend use of a Real Estate Contract, instead of a Note and Deed of Trust. Better protections for seller; more simple to recover property in event of default, especially if residential property. DOT foreclosure expenses and time frames are much more burdensome then REK forfeiture statute. Also, on installment sale with monthly payments, use an independent collection service to track monthly payments. Cost is nominal, benefits, including tracking interest income received is significant.
 
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.
 
From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Kristina Driessen
Sent: Saturday, May 28, 2016 10:45 AM
To: WSBA Probate & Trust Listserv
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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