[WSBAPT] Taking Dad off Title to Real Property

Fri Jan 19 17:02:37 PST 2018

True story: my partner and I refinanced our house many moons ago while I was in law school.  Since I wasn’t working the lender assumed I would not be contributing to the loan payments and drafted all the documents without my name as a co-borrower on the new loan.  At the signing, they basically gave us the option to come back in three days when they could have new documents printed up, or for my partner to sign then and there as the sole borrower.

I am now half owner of a house with no personal liability on the mortgage.  Of course I’m paying my half, but I was blown away that (a) they did that in the first place, and (b) they weren’t more concerned for my partner’s financial wellbeing.

Happy weekend to all,

Sara

Sara D. Longley, J.D., LL.M.

LONGLEY LAW PLLC 

1734 NW Market Street

Seattle, WA 98107

 <tel:%28206%29%20434-5644> (206) 434-5644

 <mailto:Sara at longley-law.pro> Sara at Longley-law.pro

 <http://www.longley-law.pro/> www.longley-law.pro

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jared E. Adams
Sent: Friday, January 19, 2018 4:25 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Taking Dad off Title to Real Property

Hi Nestor,

I don’t know about the escrow instructions. My client said he felt like they pushed him into doing this way because that’s how they had the forms prepared, and they insisted it would be “super easy” to fix later.  It seems like a classic case of customer dis-service.

Jared

Jared E. Adams, JD, LL.M.

Condie & Adams, PLLC
611 4th Avenue, Suite A
Kirkland, WA  98033
(voice):  (425) 450-1040 
(fax):  (425) 450-1041

(email):  <mailto:jared at condieadams.com> jared at condieadams.com

(web):  <http://www.condieadams.com/> www.condieadams.com

Unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

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From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Nestor Gorfinkel
Sent: Friday, January 19, 2018 4:19 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Taking Dad off Title to Real Property

Were there any escrow instructions to the escrow company to structure this as a loan to back your clients position? I know the horse is out of the barn but why did clients close in this manner? I would request a ruling to avoid any adverse interpretation and the penalties etc that would follow.

Nestor Gorfinkel, Esq.- Sent from my Samsung Device

-------- Original message --------

From: "Jared E. Adams" <jared at condieadams.com <mailto:jared at condieadams.com> > 

Date: 1/19/18 15:52 (GMT-08:00) 

To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> > 

Subject: [WSBAPT] Taking Dad off Title to Real Property 

Hi All,

I have a real estate question fitting for a raining Friday afternoon. I met with a client who made a loan to his daughter for her to buy a house. He loaned her the full purchase price amount, so no other “lenders” are involved.

At closing, the escrow company prepared the deed with Dad and Daughter as tenants in common. Dad explained Daughter was to be sole owner, and the escrow company basically said, no problem, just file a deed afterwards to transfer your interest to your daughter. So, after the transaction closed, Dad contacted me to prepare the Deed of Trust securing the loan to Daughter, and to prepare the Quit Claim Deed to remove himself from the title.

My question is how to avoid the Real Estate Excise Tax when filing this Quit Claim Deed. I looked over the statute and the exemptions that mostly match the facts are WAC 458-61A-214 (Nominee) and -215 (Clearing or exiting title). I called the DOR and they suggested submitting this for a ruling.  

I can’t imagine this is a new or unique fact pattern. Has anyone else dealt with this? Is there a simple fix I am missing?

Thanks for your thoughts!

Jared

Jared E. Adams, JD, LL.M.

Condie & Adams, PLLC
611 4th Avenue, Suite A
Kirkland, WA  98033
(voice):  (425) 450-1040 
(fax):  (425) 450-1041

(email):  <mailto:jared at condieadams.com> jared at condieadams.com

(web):  <http://www.condieadams.com/> www.condieadams.com

Unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

PLEASE READ THIS ENTIRE DISCLAIMER 

This message is from the Law Office of CONDIE & ADAMS, PLLC, and is intended only for the addressee.  The information contained in this message is privileged, confidential, and protected by the attorney-client or attorney work product privileges.  Unauthorized forwarding, printing, copying, distribution, disclosure or use of such information is strictly prohibited.  If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by return e-mail or you may call our office at (425) 450-1040. Nothing in this message should be interpreted as a digital or electronic signature that can be used to authenticate a contract or other legal document.

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