[WSBAPT] Selling real property to pay estate tax

Thu Dec 16 11:47:34 PST 2021

I wish I had used your title company, John. Old Republic raked me and my client over the coals recently in this situation. Initially they said they would accept a letter as Heather described. Then they wanted my law firm’s letter notarized and guaranteed by me personally (no thanks). Then they wanted my client to personally guarantee the taxes would be paid (no thanks). Finally they accept a notarized indemnification agreement from the Estate that the taxes would be paid, which seems reasonable but took dozens of phone calls to get there, and they expected me to draft it on behalf of the estate. Not a great experience, would highly recommend paying the taxes with liquid assets if you have them.
Best,
Nick

Nicholas Pleasants
Owner

[(Logo) Pleasants Law Firm]<http://www.pleasantslaw.com/>

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Bellevue, WA 98005-1755
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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of John McCrady <j.mccrady at pstitle.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Thursday, December 16, 2021 at 11:42 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Selling real property to pay estate tax

Sorry to be late to the game, but we would find such a letter of assurance to be sufficient for our purposes.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of cyfield at rockisland.com
Sent: Thursday, December 16, 2021 10:54 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Selling real property to pay estate tax

Thanks Heather and all- I was hoping a letter of assurance along those lines might satisfy title company. I’ll likely reach out to local title company once we have a better handle on assets/liabilities. Thanks again, 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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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Heather de Vrieze
Sent: Thursday, December 16, 2021 9:24 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Selling real property to pay estate tax

I have more than once provided a letter regarding estate taxes which stated “this property is being sold to provide liquidity to pay the likely estate taxes due on account of the death of the owner which will be timely paid.”

I suppose it depends on the title company, but this has worked for me in the past.

Heather

Heather S. de Vrieze
Attorney-at-Law
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3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of cyfield at rockisland.com<mailto:cyfield at rockisland.com>
Sent: Wednesday, December 15, 2021 4:55 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto: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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