[WSBAPT] sale of beneficiary's interest in trust

[David Faber]

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*
> [image: advocates]
> P. O. Box 619
> Wilbur, WA 99185
> 509 647 5578
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