[WSBAPT] Does a Transfer to JTWROS trigger due on sale?

[John Creahan]

Jeff,
What is the client trying to accomplish by making the transfer to joint tenancy at this point? As others have pointed out, there may be simpler ways to accomplish his goals, such as a retained life estate or charitable trust.
Thanks,
John

John Creahan
john at cairn-law.com<mailto:john at cairn-law.com>
1325 4th Ave., Suite 940
Seattle, WA 98101
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>
[cid:image001.png at 01CE636C.3EB992D0]

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of jeffrey winter
Sent: Monday, October 24, 2016 10:17 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Does a Transfer to JTWROS trigger due on sale?


Mary,



Thank you!  I had almost forgotten about the excise tax aspect of this...the property is currently in a Revocable Living Trust, and the church is his sole beneficiary, but I don't think it would qualify under Garn St. Germaine as a relative...



Jeff Winter

________________________________
From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> on behalf of MK Henderson <law.mkh at gmail.com<mailto:law.mkh at gmail.com>>
Sent: Saturday, October 22, 2016 5:05 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Does a Transfer to JTWROS trigger due on sale?

Would a transfer on death deed work? I think a joint deed transfer with an underlying balance may create a reet. A todd doesnt require a reet. I beleive Garn allows for inherited property. You could also transfer the property to a trust.

On Saturday, October 22, 2016, jeffrey winter <jdwinter at hotmail.com<mailto:jdwinter at hotmail.com>> wrote:

For those of you working on Saturday...



I have a client that would like to quit claim his house to his church (non profit corp) and himself as joint tenants with right of survivorship.  The house has an existing deed of trust, and the church holds a subordinated second deed of trust for some improvements the church has made to the house (the client has donated the use of the house for holding church services).



I understand that Garn St. Germaine protects transfers upon the death of a joint tenant from triggering due on sale clauses, but my concern is the front end of the transaction -- where the client creates the joint interest in the first place.



In reviewing the language prohibiting transfers of interest by the borrower on the underlying deed of trust, it appears to prohibit any transfer "the intent of which is the transfer of title by Borrower at a future date to a purchaser."  I'm not sure that would apply in this instance, although the church has been making payments on the house for some time, and would continue to do so in the event of the death of my client.



Any thoughts?



Thank you in advance....



Jeff Winter
Jeffrey D. Winter
Law Office of Jeffrey D. Winter, P.S.
604 North Main Street
Ellensburg, WA 98926
(509) 925-9600 tel.
(509) 925-9606 fax







--
Mary K. Henderson
Henderson Law Office PLLC
1123 Maple Ave SW, Suite 225
Renton, WA 98057
206-650-2472

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