[WSBAPT] sale of beneficiary's interest in trust

[Josh Grant]

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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