[WSBAPT] sale of beneficiary's interest in trust

[Josh Grant]

beneficiaries (who are 2 of 4 grandchildren) are purchasing.  I have talked client to a terminating TEDRA distribute to all 4, and then 2 of the beneficiaries will sell their 1/2 to the other 2 beneficiaries.  standard R/E sale.

Joshua F. Grant

P. O. Box 619
Wilbur, WA 99185
509 647 5578

From: David Faber 
Sent: Friday, October 30, 2020 10:05 AM
To: WSBA Probate & Trust Listserv 
Subject: Re: [WSBAPT] sale of beneficiary's interest in trust

Either way, the answer is "yes there is excise tax" because consideration is being paid in exchange for half of the title interest and no exemption applies under WAC 458-61A that I can see. 

I'm curious: are Client's children purchasing the interest in the cabin or is the Trustee purchasing?

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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On Tue, Oct 27, 2020 at 6:20 PM Josh Grant <jgrant at accima.com> wrote:

  I have a client who is a trustee of an inter vivos trust.  The trustors were grandparents of 4 grandchildren (two are clients kids and the other two are nephews).
  The only asset is a lake cabin.
  Only two of the beneficiaries want to have anything to do with the cabin.  The 4 have come to an agreement that the client’s kids will buy out the others and have agreed on a price.
  I am wondering if the grandkids were, pursuant to a TEDRA agreement, to purchase the other grandkids’ beneficiary interest in the trust (as opposed to the land itself after termination of the trust) and the trust continued, whether there would be any excise tax payable?  I assume so but wanted to check.
  Would there be any benefit in selling/buying a beneficiary’s interest rather than simply terminating the trust and having a sale of the real property?

  josh
  Joshua F. Grant

  P. O. Box 619
  Wilbur, WA 99185
  509 647 5578
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