[WSBAPT] Canadian Owner of Washington Real Estate

[Carla J. Higginson]

Hi Tom,

As it happens, you have an expert on this right in your own backyard (well, at least on one island over from Orcas)!  I spoke with my law partner Garrett Beyer, who is an international business and tax attorney with extensive experience in US-Canada matters including estate planning.  His initial thought, on the basis of the facts contained in your email below, is that a form of hybrid trust arrangement may be able to solve Canadian-side tax issues and reduce or eliminate US-side issues.  However, he needs more facts.  He says that you should feel free to give him a call.  360-378-2185.

Regards,
Carla
___________________________

Carla J. Higginson, Attorney
Higginson Beyer, P.S.    [cid:image004.png at 01D142F8.438976E0]
Friday Harbor Office:
175 Second Street North, Friday Harbor, Washington 98250 | Telephone: (360) 378-2185 | Facsimile: (360) 378-3935
Seattle Office:
701 Fifth Avenue, Suite 5500, Seattle, Washington 98104 | Telephone: (206) 623-8888 | Facsimile: (360) 378-3935

carla at higginsonbeyer.com<mailto:carla at higginsonbeyer.com>
HigginsonBeyer.com

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Thomas Fiscus
Sent: Tuesday, April 30, 2019 2:19 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Canadian Owner of Washington Real Estate


Hi Listmates –

This may be a common problem for attorneys of our ilk in Washington, but new to me.  Client and her sister are Canadian.  The sister owns Washington real property in which the client lives with her U.S. citizen husband and two U.S. citizen daughters.  Sister wants to transfer the property to my client, or the client’s daughters, with minimal costs in fees and taxes.  Sister doesn’t want to sell the property, so as to avoid FIRPTA.  RCW 11.20.090 would appear to allow the Sister to create a revocable living trust in Washington and distribute the property at death to the daughters, whom I believe could claim a stepped up basis at that time.  The property would probably still be under the Washington estate tax threshold.  The Sister could instead bequeath the property to the daughters via Will, but I’m unclear about the Canadian tax consequences of that.  Anyone have an idea how best to minimize hassle and taxes in this situation?

Thanks
Tom Fiscus


Law Office of Thomas J. Fiscus
Box 1167
Eastsound, WA 98245
Ph 360-376-3988
WSBA # 44741
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