[WSBAPT] Sale of Residence to one Beneficiary

[Marcus J. Fry]

Paul:
If there are insufficient other assets in the estate, the estate just enters into a PSA with the purchasing beneficiary to sell the house at the value less the beneficiary's one-third share.  For example, if the FMV of the house is $300,000, the beneficiary purchases the house for $200,000.  There would be excise tax anyway you slice it in this scenario with a purchase because you do not have other assets of the estate to equalize the distribution per your statement.  I should note often time the parties agree to reduce the FMV a bit further before dividing given the fact that the parties are saving on realtor commissions.  If the beneficiary does not want to put anything down for their loan, you have to tweak things a bit to have the estate "distribute" the beneficiary's one-third share at time of sale.


Marcus J. Fry
Attorney | Witherspoon * Kelley
mjf at witherspoonkelley.com<mailto:mjf at witherspoonkelley.com> | Attorney Profile<https://www.witherspoonkelley.com/marcus-j-fry> | vCard<https://www.witherspoonkelley.com/s/mfj.vcf>

[cid:WK-Email-Logo_8ac8613e-356a-401d-bc99-22b12b819f24.png]

222 N. 3rd Street
Yakima, WA 98901
(509) 248-7220 (office)
(509) 575-1883 (fax)
witherspoonkelley.com


Confidentiality Notice: The information contained in this email and any accompanying attachment(s) is intended only for the use of the intended recipient and may be confidential and/or privileged. If any reader of this communication is not the intended recipient, unauthorized use, disclosure or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return email, and delete the original message and all copies from your system. Thank you.
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Paul Neumiller
Sent: Thursday, November 18, 2021 4:38 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Sale of Residence to one Beneficiary


Listmates, I have a probate where one beneficiary wants to purchase the family home from his two siblings.  So, nuts and bolts. How does this work?  Does the PR use a PR deed to transfer the residence to the 3 siblings (excise tax free) and then the two siblings sell their 2/3rds interest to the buying sibling (with excise tax on the transfer of the 2/3rds interest?)  (I can't imagine the two siblings happy to pay the excise tax.) There is not enough other assets in the estate to distribute the house completely to the buying sibling. It seems cumbersome for the buying sibling to purchase the residence directly from the estate for full price and then receive 1/3rd of the proceeds back.  (AND, the buying sibling can't come up with the full price anyway) Plus then there might be excise tax on the full value of the residence.  So how do you guys do this?





[cid:image003.jpg at 01D7DC9D.40EE6360]






Links contained in this email have been replaced by Link Protection. If you click on a link, it will be analyzed for known threats before allowing you to proceed.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20211119/963bca27/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 8473 bytes
Desc: image003.jpg
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20211119/963bca27/image003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: WK-Email-Logo_8ac8613e-356a-401d-bc99-22b12b819f24.png
Type: image/png
Size: 7508 bytes
Desc: WK-Email-Logo_8ac8613e-356a-401d-bc99-22b12b819f24.png
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20211119/963bca27/WK-Email-Logo_8ac8613e-356a-401d-bc99-22b12b819f24.png>