[WSBAPT] Transfer on Death Deed - is home considered asset of estate for tax purposes?

Diane J. Kiepe DJKiepe at depdslaw.com
Fri Oct 9 09:28:03 PDT 2020


You would absolutely have to include it on the estate value - under the "string" provisions of Sections 2036-2038 - the retained rights to the Grantor of a TOD has all powers of control until date of death and thus included in Gross Estate -on the upside, you get a step up in basis.  The TOD tax treatment is similar to the transfer of property with the retention of a life estate -

Good luck and have a great day Dalynne -

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Thursday, October 8, 2020 8:31 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Transfer on Death Deed - is home considered asset of estate for tax purposes?

I am getting mixed messages from CPAs regarding a transfer on death deed for a cabin worth $550,000 to a girlfriend before the decedent's death.
Does the estate have to list the TOD home as an asset of the estate for tax purposes for the value of the estate?  The estate is worth approximately $1.8 million w/o the cabin (single man).
The language of the TOD clearly provides transfer on death.  If it is included, it puts the estate over the $2.1 million threshold for WA estates.

Dalynne Singleton

Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street Box 13
PO Box 1091
Snohomish, WA 98291

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