[WSBAPT] Senior property tax exemption for 1/3rd ownership

[David Moe]

About a year ago I called the King County Assessor for a client, a low-income retiree who had been living with and caring for her 90+ year old surviving parent for some years until his death.  She and her out-of-state sibling each stood to take a 50% tenancy-in-common interest per the trust.  She could not afford full RE taxes, let alone afford to buy out her sibling's share. The assessor's office staffer advised me their interpretation was that, at most, the sole-occupant 50% co-owner would receive 50% of the otherwise available exemption, notwithstanding her sole occupancy.  On my recommendation, the out-of-state sibling and the occupant sibling joined in a TEDRA providing that the occupant sibling would have an exclusive terminable life estate-terminable upon my client's discontinuance of occupancy as her primary personal residence or upon her decision to sell.  We then implemented the trust estate distribution by a deed implementing the TEDRA.  AFIK, this enabled my client to qualify for an unreduced low-income senior RE Tax exemption.
Dave Moe

David Moe Attorney, P.S.
Telephone:  425-432-1277
Fax:  425-432-1280
Address:
22128 SE 237th
Maple Valley, WA 98038


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Rick Hoss
Sent: Monday, March 04, 2019 11:39 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Senior property tax exemption for 1/3rd ownership

Rhonda,
The Thurston Co. Assessor website is helpful: https://www.co.thurston.wa.us/assessor/doc/SEN_DIS_VET.PDF.
Section 2 says for co-owners only one person must meet the age or disability requirements.
Rick

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Ronda Larson Kramer
Sent: Friday, March 01, 2019 7:21 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Senior property tax exemption for 1/3rd ownership

Listmates,

I'm doing some pro bono estate planning for a low income senior who owns her home but as tenants in common with her two children (all have 1/3rd ownership). She is the only one who lives there. I read RCW 84.36.381 to not exclude her from the property tax exemption. Would you agree? It is silent on non-spouse partial ownership, but the fact that a person who lives in a home and whose interest is merely a life estate can nevertheless receive the tax exemption is persuasive to me that the legislature also contemplated these types of situations, where a low income senior has children on her deed.

Assuming she is eligible, how does she obtain the exemption? Simply go to the tax assessor's office and apply? She has been paying the full property tax up to now and does not realize she is eligible for the exemption.

Ronda Larson Kramer
J.D., LL.M. Taxation, Owner

LARSON LAW, PLLC
Elder Law, Estate Planning
1700 Cooper Point Rd SW, Bldg A3
Olympia WA 98502
Ph: 360-259-3076
ronda at larsonlawpllc.com<mailto:ronda at larsonlawpllc.com>
www.larsonlawpllc.com<http://www.larsonlawpllc.com/>

NOTICES: This message, including attachments, is confidential and may contain information protected by the attorney-client privilege or work product doctrine. If you are not the addressee, any disclosure, copying, distribution, or use of the contents of this message are prohibited. If you have received this email in error, please destroy it and notify me immediately. Any tax advice contained in this message is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the internal revenue code or (2) promoting, marketing, or recommending to others any tax-related matter(s) addressed here.

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