[WSBAPT] Gifting of intestate shares

[Philip N. Jones]

If there is a legitimate bona fide enforceable cause of action, the IRS will honor the agreement and give it effect for tax purposes.  If it is a friendly generous rearrangement of economic interests, the IRS will ignore it for tax purposes.  One or more gifts will likely result.  But since Washington has no gift tax, and the federal exemption is so high, perhaps that does not matter.
Phil Jones
Portland, OR

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 – office
(503) 853-1482 – cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Roger Hawkes
Sent: Tuesday, September 14, 2021 4:29 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Gifting of intestate shares

It dawned on me: I don’t know if the jurisprudence around ‘sham litigation’ operates in the tedra context: can potential contestants file and settle a tedra action without any real intent to litigate?

Roger Hawkes, WSBA # 5173
Sky Valley Law
For incoming mail: Box 351, Sultan 98294
For in person visits: 423 Main, Sultan, WA 98294
Or other places to be arranged
206 367 5000
360 799 6438
Fax: 206 367 4005

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: Tuesday, September 14, 2021 2:10 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Gifting of intestate shares

A couple thoughts:

On your first client situation. If the property truly I separate, the surviving spouse would be entitled to ¾, and the siblings together only ¼. RCW 11.04.015<http://app.leg.wa.gov/RCW/default.aspx?cite=11.04.015> It is possible that their ¼ isn’t that so much value that simply gifting to the surviving spouse would be within the $15,000 annual exclusion, a different situation in any case than them each being entitled ¼. A TEDRA agreement would be a good idea if the goal is to have the deed flow from the estate directly to the spouse rather than deeds to siblings and then gift deeds back. I think the truck, if they agree to give it to her can be fairly easily handled by going into the vehicle licensing office with the title, a death certificate and marriage certificate. I’m not sure they would care too much about the agreement.

On the second client situation: If the ex-wife (mom) was awarded the property in the divorce, the fact that decedent is still on title doesn’t make it an estate asset to be distributed to children. The administrator of the estate should be executing a quit claim deed pursuant to the divorce decree.

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image003.jpg at 01D7A986.F1D63C60]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
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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 Suzanne Lieberman
Sent: Tuesday, September 14, 2021 1:09 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Gifting of intestate shares

Hello,

Seemingly straightforward, but I have not done these before. Decedent spouse is the Administrator of intestate estate. Decedent also had 4 siblings. The only assets left in decedent's name are a house and truck bought several years before the marriage. I did a tracing analysis and wrote to the siblings to let them know the 1/4 shares they are each entitled to. All 4 want to gift their shares to our client.

Should I have the siblings sign a TEDRA Non-Judicial Binding Agreement, per RCW 11.96A.220 and file that with the court? If so, is anyone willing to share a template for such a thing?  No separate proposed order, per RCW 11.96A.230 is required, correct?

After that, can we use that Agreement to draft a PR deed putting the house fully into our client's name? What about the DOL/truck issue? Does DOL just need to see that signed Agreement to transfer title to her?

We have another client who is the ex-wife of decedent who passed in 2012, also without a will. Their 3 kids are the heirs but client gets the house per the divorce decree and the kids all want to gift their shares to their mom. What is the best way to go about this one? TEDRA Non-Judicial Binding Agreement with the kids gifting their shares and filing the divorce decree with the court, then drawing up the PR deed in client's name alone?

Best,

Suzanne Lieberman
CMS Law Firm LLC<http://cmslawfirm.com/>
811 Kirkland Ave. Suite 201 (please note new address!)
Kirkland, WA 98033
206-383-6484 (Cell Phone)
206-659-1512 (Main Office)


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