[WSBAPT] Selling real property to pay estate tax

[Diane J. Kiepe]

Cy,

Just thinking outside the box here, any chance any person can loan the tax funds to the estate?  I have had that done in different context.  Sometimes folks with this size estate have family members that are in a like situation.  Just food for thought.

A second thought is to work with the title company to see if the funds are secured for the tax at closing if they have some mechanism in place to continue the transaction - I feel like there must be a SOP for such a situation - Farm property comes to mind where this is a real problem.

Best of luck to you.

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 cyfield at rockisland.com
Sent: Wednesday, December 15, 2021 4:55 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Selling real property to pay estate tax

Folks- I just opened a probate with total probate/nonprobate assets of approx. $3.5 million total. The rub is there likely will be not enough assets in probate estate to satisfy WA estate tax liability. According to Will/Trust,  any balance owed is to be apportioned pursuant to Washington law.  We are prepared to give notice to beneficiaries of non-probate assets of potential liability pursuant to RCW 11.18.200. However, it is quite possible that my client as successor trustee, with beneficiaries' consent, will need to sell some specifically gifted real property .  I am preparing a letter of instruction to my client and it crossed my mind that this may be a catch 22 situation  in that title company won't insure sale without confirmation that taxes are paid but we can't pay taxes until real property is sold.  This is my first rodeo on this horse and I was wondering if anyone had any suggestions/words of wisdom? Thanks in advance, Cy

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon); Phone: 360-472-1223
Mail: POB 367, Shaw Island, WA 98286; Physical Office:  640 Mullis St #214, Friday Harbor, WA
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