[WSBAPT] Excise tax on inherited properties of FLP and RLT

[Kira Rubel]

Hello list!


I have three clients who inherited 9 properties from their now-deceased
parents, out of the parents' Family Limited Partnership and the parents'
living trust. Now, we're in the process of transferring title to each
child's LLC or living trust.



The parents did not leave specific properties to specific kids, rather all
properties were left to all three children. The three adult children
decided among themselves how to divide up the properties (and cash). Each
child is taking 3 properties in their entirety.



My office spoke with the DOR-Excise Tax department and they said we might
have an excise tax problem for 2 reasons. One, all properties were left to
all 3 kids to divy up as they please. Two, is it even possible to transfer
the properties directly from the parents' FLP/RLT to each child's LLC or
own living trust?



Has anyone done this in practice? I'm concerned about getting the WAC
exemption correct!



Many thanks!

*Kira M. Rubel, Esq.*

**Licensed in CA and WA*



*The Harbor Law Group *

(*formerly, Law Office of Kira M. Rubel*)

*3615 Harborview Drive NW, Suite C (on the dock)*

*Gig Harbor, WA 98332-2129*

CA Bar No. 253970 / WA Bar No. 51691

Tel.  (253) 358-2215 | (800) 836-6531

Fax. (253) 358-2191

*https://theharborlawgroup.com/ <https://theharborlawgroup.com/>*

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