[WSBAPT] Deed which includes "after acquired property"

Thu Aug 29 13:47:44 PDT 2019

Karl:

Wouldn’t the value of any gift be determined at the time that:  “Before mom dies, b and c sign quit claim deed as to mom’s house which says, we quit claim our share of the house to “a”, along with any “after acquired” interest in the house.”   Does that help reduce the size of the gift?

-jbd-

===================

Jones Butler Dolan, PS

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

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

Mount Vernon

P.O. Box 2784

415 Pine Street 

Mount Vernon, WA 98273

Telephone: 360-336-2939

Facsimile: 360-336-2949

Stanwood

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10027 - 269th Place NW (SR 532)

Stanwood, WA 98292

Telephone: 360-629-3833

Facsimile: 360-629-6253

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Karl Flaccus
Sent: Thursday, August 29, 2019 1:35 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Deed which includes "after acquired property"

Mom’s will leaves everything to a, b and c.  Before mom dies, b and c sign quit claim deed as to mom’s house which says, we quit claim our share of the house to “a”, along with any “after acquired” interest in the house.  B and c apparently did this in anticipation of each “acquiring” a 1/3 interest in the house when mom died.  The quit claim was not done in the context of sale or a quid pro quo of any kind.  

Mom dies.  Mom’s PR deeds house equally to a, b and c.  20 years pass, during which time a, b, and c believe that a owns the house. 

“a” goes to refi the house, and the title company balks, saying a does not own the house alone.  

Do b and c really own a portion of the house?  The problem with new quit claim deeds from b and c is that the gifts would be large and would eat into the needed federal exemption limits. 

Karl

FLACCUS LAW

7010 35th Ave. N.E.

Seattle, Washington  98115

206 523-0297

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John McCrady
Sent: Thursday, August 29, 2019 10:49 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Trust - QC Deed - Deceased Trustee

Typically, the issue will be raised by the Title Company insuring the transaction.  We would request proof of the authority of the person claiming to be trustee.  ( a copy of the trust and any amendments, together with a declination to serve and death certificate for the original trustee, for instance)

The deed would state “John Smith, successor trustee of the Mabel Smith Living Trust dated January 1, 2001”.  

We also hope for a recital on the deed setting forth the succession of trustees, if there is room.

There would be no need for a deed to the new trustee; the authority of the successor trustee is established by the terms of the trust instrument itself.

John McCrady

Counsel

Puget Sound Title Company

5350 Orchard Street West

University Place WA 98467

253-476-5721

j.mccrady at pstitle.com

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of William Brewer
Sent: Thursday, August 29, 2019 10:04 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Trust - QC Deed - Deceased Trustee

Listmates: 

Imagine several of you have dealt with this situation before. 

PC is the second Successor Trustee of a Trust (first Successor Trustee is alive, but no longer wanted to serve). The trust’s main asset is a home. The original Trustee (who is now deceased) received the property as Trustee per QC deed in the 90s. The QC deed stated: “convey and quitclaim to [deceased Trustee], Trustee”. Nothing is said about a successor trustee in the QC deed. The deed has not been changed or updated since the 90s. 

The PC and Beneficiaries now wish to sell the property and wind up the Trust. The PC/current Trustee must execute a deed to remove it from the trust, but their name is not on the QC Deed. What is the most effective way of dealing with this to make sure the current Trustee can sell the property? 

A correction deed only seems appropriate for minor clerical errors. Is the best route to file a current declaration of trust or affidavit of change of trustee in the county where the deed is recorded? An Affidavit of Death of Trustee and Consent of Successor Trustee? 

Any help and especially examples you previously used would be greatly appreciated. I want to make sure I am not missing something and dealing with this the most efficient way possible for PC. 

Feel free to message me directly. Thank you for your help! 

Best Regards, 

Will Brewer

William P. Brewer

Ravenna Estate Law

signature_435521371

4500 9th Ave NE, Suite 300 

Seattle, WA 98105

T: 206.384.8349

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