[WSBAPT] Tenant/Beneficiary Under Will

Mon Jul 17 19:05:33 PDT 2017

I'm dealing with an estate made up of almost exclusively real property, very
little cash, and substantial debt. Although the property vests immediately
in the beneficiary, I'm told it doesn't mean the beneficiary receives it (or
rent or income) until the estate is settled and property distributed. In our
case, property must be sold to service the debt, and the PR has discretion
as to what will be sold - so it appears that the intended beneficiary of the
property to be sold is not fully 'vested' in the sense of full ownership.

Marilyn J.Kliman

Marilyn J. Kliman Law, PLLC

510 Bell Street

Edmonds, WA 98020

 <tel:206.499.0993> 206.499.0993

 <mailto:Marilyn at MarilynJKlimanLaw.com> Marilyn at MarilynJKlimanLaw.com

 <http://www.marilynjklimanlaw.com/> www.MarilynJKlimanLaw.com

NOTICE: Information contained in this email may be confidential and/or
legally protected from disclosure. Our understanding is that intended
recipients consent to use of e-mail unless we are notified otherwise in
writing. If you are not the intended recipient, nor an employee or agent
responsible for delivering this message to the intended recipient, any
unauthorized dissemination, distribution or copying of this communication is
strictly prohibited. If you have received this in error, please notify us
immediately by replying to the message and deleting it from your computer.

From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Douglas Bratt
Sent: Monday, July 17, 2017 9:41 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Tenant/Beneficiary Under Will

What about the income tax issues involved with the rent payments received by
the Estate during the administration?  Reportable? By Whom?  The Estate? The
tenants in whom real estate vested at death?

If reportable by the Estate, the K-1 going to the tenant/beneficiaries will
be a pass-through (either income or a loss) to the personal income tax
returns of the recipients.  

Any thoughts about this angle?  (I don't know about others, but this one
makes my head hurt.)

Doug Bratt

Douglas J. Bratt

Lawyer

Envelope scaled Terry

Office: (360) 213-2040 

 Fax: (360) 213-2030

CONFIDENTIALITY NOTICE:  This email message may contain confidential or
privileged information.  If you have received this message by mistake,
please do not review, disclose, copy, or distribute the email. Instead,
please notify us immediately by replying to this message or telephoning us.
Thank you.

NOTE:  I do not use encrypted email.  Messages sent to or from my office via
email are not secure and may not be protected by attorney-client privilege.
This email address is not monitored at all times.  If your matter is urgent,
please phone my office during regular business hours.

From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Heather deVrieze
Sent: Monday, July 17, 2017 4:18 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Tenant/Beneficiary Under Will

I believe RCW 11.04.250 is pretty clear that real estate devised vests at
death, together with all rents and profits, so as you propose, the rents,
after reasonable expenses (like utilities) are deducted should be delivered
to the beneficiary. I think a short statement explaining the net rents
returned, together with a check and the deed makes sense. The recipient will
also need to sign off on the excise tax affidavit accompanying the deed, and
should be notified that the property is transferring with sufficient time to
change their insurance to reflect their ownership. 

Heather 

Heather S. de Vrieze
Attorney-at-Law

cid:image001.jpg at 01D013C2.30F35160

3909 California Avenue SW

Seattle, WA 98116-3705                          

(206)938-5500 

 <mailto:heatherd at westseattlelaw.com> heatherd at westseattlelaw.com 

 <http://www.westseattlelaw.com/> www.westseattlelaw.com 

Click here to connect with de Vrieze | Carney on Facebook:
<https://www.facebook.com/DeVriezeCarney> FB Logo

CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally
privileged and/or confidential information.  If you have received this
e-mail in error, please notify the sender immediately and delete all copies
of this e-mail message and any attachment.

From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Monday, July 17, 2017 3:41 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Tenant/Beneficiary Under Will

Listmates, this is a new one for me and I need a reality check.  Testate
Decedent with no family leaves duplexes to various long-term tenants who are
paying rent.  There is a professional property manager.  Ok so far but what
happens to paid rents after the date of death but before the date of
distribution?  The real property transfers to the heirs and beneficiaries
upon date of death (RCW 11.04.250) .  The rents have been deposited into a
bank account that are still available for reimbursement so we can deliver
the PR deeds to the tenants along with a refund check (paid rent minus
utilities paid).  Does this sound about right?  What is the general practice
out there?  

---
This email has been checked for viruses by Avast antivirus software.
https://www.avast.com/antivirus
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170717/75cd78b2/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 6775 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170717/75cd78b2/image001.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 4734 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170717/75cd78b2/image002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.png
Type: image/png
Size: 3264 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170717/75cd78b2/image003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 7130 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170717/75cd78b2/image004.jpg>