[WSBAPT] Sale of Residence to one Beneficiary

[Heather de Vrieze]

I do part distribution-part sale transactions like these pretty regularly. Essentially identify full price, use the inherited part as the downpayment, with sufficient funds to equalize the other beneficiaries as the amount of consideration for excise tax purposes.

Heather

Heather S. de Vrieze
Attorney-at-Law
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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?





[Paul A_ Neumiller]




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