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

Tue Nov 26 20:02:04 PST 2019

Thanks, Sara, that's really helpful!

Best,
Candace

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Sara D. Longley
Sent: Tuesday, November 26, 2019 5:52 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Revocable trust vs. transfer on death deed(s)

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

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

LONGLEY LAW PLLC
1734 NW Market Street
Seattle, WA 98107
(206) 434-5644<tel:%28206%29%20434-5644>
Sara at Longley-law.pro<mailto:Sara at longley-law.pro>
www.longley-law.pro<http://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 Roger Hawkes
Sent: Tuesday, November 26, 2019 5:28 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)

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
www.hawkeslawfirm.com<http://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

[cid:image001.jpg at 01D1F8A6.19C81E60]
Sara D. Longley, J.D., LL.M.

LONGLEY LAW PLLC
1734 NW Market Street
Seattle, WA 98107
(206) 434-5644<tel:%28206%29%20434-5644>
Sara at Longley-law.pro<mailto:Sara at longley-law.pro>
www.longley-law.pro<http://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

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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
cwilkerson at wongfleming.com<mailto:cwilkerson at wongfleming.com>

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