[WSBAPT] Any Tricks or Tips to Avoid REET on Subsequent Transfers

[rob at hctc.com]

Why not just a Family Settlement Agreement/REETA? See below from my form
brief:

 

II.        BASIS FOR AGREEMENT

            A.        Family Settlement Agreement Doctrine.  Washington law
provides that family members may settle matters subject to probated estates
by agreement:  

The rules applicable to family settlement are discussed at length in the
case of Warner v. Warner, 124 Conn. 625, 1 A.2d 911, 914, 118 A.L.R. 1348,
and in the annotations beginning at page 1357. It is quite generally stated
that family settlements are favorites of the law. The opinion cites 12
Am.Jur., Contracts, §§ 85, 86, 87, and states:

 

‘The settlement by compromise of will contests and family disputes, being
calculated to avert contentions, adjust doubtful rights, contribute to peace
and harmony, protect the honor of the family, and avoid litigation, is not
in contravention of public policy, and, when fairly arrived at, is favored
both in law and in equity.’



In re Witte's Estate, 25 Wash. 2d 487, 498 (1946); see also, Hadley v.
Cowan, 60 Wash. App. 433, 438–39, 804 P.2d 1271, 1274 (1991) ("Family
settlements such as this should be accorded finality to the fullest extent
possible, and should be encouraged and fostered as a matter of public
policy").

            B.        TEDRA.  The Trust and Estate Dispute Resolution Act
also provides a basis for this Family Settlement Agreement:  

The overall purpose of this chapter is to set forth generally applicable
statutory provisions for the resolution of disputes and other matters
involving trusts and estates in a single chapter under Title 11 RCW. The
provisions are intended to provide nonjudicial methods for the resolution of
matters, such as mediation, arbitration, and agreement. This chapter also
provides for judicial resolution of disputes if other methods are
unsuccessful.



RCW 11.96A.010.   

            The parts of TEDRA that address settlement agreements start with
RCW 11.96A.210,  which says that RCW 11.96A.220-.250 are intended "to
provide a binding nonjudical procedure to resolve matters through written
agreements among the parties interested in [an] estate or trust.  The
procedure is supplemental to, and may not derogate from, any other
proceedings or provision authorized by the common law."  This means that
this nonjudicial procedure established by TEDRA is supplemental to the
application of the Family Support Agreement doctrine.  Such an Agreement
should identify the subject matter and the parties, and be reduced to
writing; and upon filing of the Agreement, or a Memorandum of the Agreement,
it becomes equivalent to a final court order that is binding on all persons
interested in the Estate or trust. 

            TEDRA provisions regarding Agreements include the following:

           11.96A.210.  Purpose.  The purpose of RCW 11.96A.220 through
11.96A.250 is to provide a binding nonjudicial procedure to resolve matters
through written agreements among the parties interested in the estate or
trust. The procedure is supplemental to, and may not derogate from, any
other proceeding or provision authorized by statute or the common law.

 

           11.96A.220.  Binding agreement.  RCW 11.96A.210 through
11.96A.250 shall be applicable to the resolution of any matter, as defined
by RCW 11.96A.030, other than matters subject to chapter 11.88 or 11.92 RCW,
or a trust for a minor or other incapacitated person created at its
inception by the judgment or decree of a court unless the judgment or decree
provides that RCW 11.96A.210 through 11.96A.250 shall be applicable.  If all
parties agree to a resolution of any such matter, then the agreement shall
be evidenced by a written agreement signed by all parties.  Subject to the
provisions of RCW 11.96A.240, the written agreement shall be binding and
conclusive on all persons interested in the estate or trust.  The agreement
shall identify the subject matter of the dispute and the parties.  If the
agreement or a memorandum of the agreement is to be filed with the court
under RCW 11.96A.230, the agreement may, but need not, include provisions
specifically addressing jurisdiction, governing law, the waiver of notice of
the filing as provided in RCW 11.96A.230, and the discharge of any special
representative who has acted with respect to the agreement... .          

 

           11.96A.230.  Entry of agreement with court--Effect

            (1)       Any party, or a party's legal representative, may file
the written agreement or a memorandum summarizing the written agreement with
the court having jurisdiction over the estate or trust.    ... Failure to
complete any action authorized or required under this subsection does not
cause the written agreement to be ineffective and the agreement is
nonetheless binding and conclusive on all persons interested in the estate
or trust.

            (2)       On filing the agreement or memorandum, the agreement
will be deemed approved by the court and is equivalent to a final court
order binding on all persons interested in the estate or trust.

 

 

Robert D. Wilson-Hoss

Hoss & Wilson-Hoss, LLP

236 West Birch Street

Shelton, WA 98584

360 426-2999

www.hossandwilson-hoss.com <http://www.hossandwilson-hoss.com> 

rob at hctc.com <mailto:rob at hctc.com> 

 

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Matt Yates
Sent: Wednesday, September 23, 2020 1:51 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Any Tricks or Tips to Avoid REET on Subsequent Transfers

 

I have an estate where Mother left estate to son and daughter in equal
shares.  They have other reasons that they cannot work out a non-pro rata
distribution so have resolved to take Mother’s house as tenants in common
and then son would like to buy out daughter’s interest in Mother’s house.  I
am relatively certain that no REET exemption will apply to subsequent
transfer (458-61A-202(6)) from sister to brother of her interest but wanted
to ensure that I have not missed any opportunity.  Thus, I am asking the
braintrust.  Any advice is welcome.  

 

Cheers,

 

Matt

 

 

Matthew D. Yates

Attorney at Law

Yates Marshall, PLLC

10000 NE 7th Avenue, Suite 200

Vancouver, WA 98685

Phone: (360) 449-6100

Fax: (360) 449-6111

matt at yatesmarshall.com <mailto:matt at yatesmarshall.com>  (New Email Address)

www.yatesmarshall.com <http://www.yatesmarshall.com> 

 

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