[WSBAPT] Revocable trust vs. transfer on death deed(s)

Tue Nov 26 17:51:51 PST 2019

A TODD by definition is a transfer from a decedent, which does result in a
stepped-up basis.  See 26 USC 1014(a)(1).

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

ATTENTION CLIENTS: I am in the process of merging my law firm into Ivy Law
Group, PLLC.  Over the next few months my web site will redirect to
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from Sara at ivylawgroup.com <mailto:Sara at ivylawgroup.com> .  My existing email
address and telephone number will continue to function and my physical
office location will not change.  I look forward to serving you in the
coming years.

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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Roger Hawkes
Sent: Tuesday, November 26, 2019 5:28 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Revocable trust vs. transfer on death deed(s)

Has it been determined that a tod deed does not result in stepped up basis?

Roger Hawkes, WSBA 5173

Hawkes Law Firm, P.S.

19944 Ballinger Way NE, Suite #100

Shoreline, WA 98155

And 423 Main in Sultan, WA 98294

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

206 367 5000 Office

206 367 4005 Fax

From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
<wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Sara D. Longley
Sent: Monday, November 25, 2019 5:08 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com
<mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] Revocable trust vs. transfer on death deed(s)

If the trust is revocable, the property will be included in their taxable
estate and receive a step-up in basis.  And, a trust gives far more
flexibility for their plans than a TODD, including the ability to name one
child as trustee for the benefit of all.

Best,

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

ATTENTION CLIENTS: I am in the process of merging my law firm into Ivy Law
Group, PLLC.  Over the next few months my web site will redirect to
www.ivylawgroup.com <http://www.ivylawgroup.com>  and I will begin emailing
from Sara at ivylawgroup.com <mailto:Sara at ivylawgroup.com> .  My existing email
address and telephone number will continue to function and my physical
office location will not change.  I look forward to serving you in the
coming years.

This email is intended only for the individual to whom it is addressed and
may contain information that is privileged, confidential, and/or exempt from
disclosure.  If you have received this message in error, please inform the
sender by telephone or reply email and delete this message and all
attachments.  Thank you.

From: wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com>
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Candace Wilkerson
Sent: Monday, November 25, 2019 4:57 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com
<mailto:wsbapt at lists.wsbarppt.com> >
Subject: [WSBAPT] Revocable trust vs. transfer on death deed(s)

Hi Listmates,

An local attorney friend of mine is dealing with the issue below, and I
suggested that the listserv might have some ideas-since I wasn't quite sure
how to deal with it.   

I have PC's who do not want to do a Revocable Living Trust and instead do a
Transfer on Death Deed to their three children.  One child is over 18 years
old, but the other two are under 18 years old.  The reason the PC does not
want to do a Revocable Living Trust is to preserve the step up in basis on
the appreciation of the property.  PC's believe the potential capital gains
on the eventual sale of the home does not warrant putting the property into
a Revocable Trust.  My question is whether doing a TD Deed is even a viable
solution?  Each spouse would have to do one for their 1/2 interest and if
one of them passes before the other the deceased spouse would be passing
their interest to the kids and not the spouse (which is not what I think
they would want).  Also, how do minors take title to property?  In the name
of the children's trustee?  

The PC's want to allow their older daughter to move into the house and keep
it until the youngest is 18 years old and then it can be sold at that time.
Is there another solution that anyone would suggest?  

Thanks,

Candace Wilkerson

Top Ranked Law Firm for 2015 by Fortune Magazine and American Lawyer Media

Candace Wilkerson  | Senior Associate  |  Wong Fleming 

10675 Willows Road NE, Suite 250  |  Redmond, WA 98052
Phone: 425.869.4040  |  Fax: 425.869.4050 
 <mailto:cwilkerson at wongfleming.com> cwilkerson at wongfleming.com

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