[WSBAPT] Elimination of Manufactured Home Owned by Probate Estate on Land Also Owned by Estate

[Jane Bitz]

John:

I ran into this problem last year in Spokane County. I could not believe that an Estate, represented by a Personal Representative, could not eliminate title on a manufactured home on owned land. In our situation, the buyer's lender would not loan if the title wasn't eliminated before sale. We actually had to distribute to the PR, as a "straw man". He was a beneficiary of the estate and we used the inheritance exemption without problem to avoid the Excise Tax on that transfer. The PR deposited the sale proceeds into a joint account that he had with his deceased mother and distributed to the other beneficiaries from there.

I actually wrote to my Legislator and State Senator about this issue because it is a Department of Licensing rule that makes no sense, but I was told by a supervisor that the Legislature needs to address it.

If I meet with clients who have manufactured homes on owned land, I tell them to eliminate title to avoid this problem in their estates or if they want to sell some day to someone who is not a cash buyer.

Learn something new every day!
Jane.

Jane G. Bitz
Of Counsel | Wolff, Hislop & Crockett, PLLC
Helping Good People do Great Things!
12209 E. Mission Ave., Suite 5
Spokane Valley, WA 99206
(509) 927-9700 (Phone)
(509) 777-1800 (Fax)
jbitz at whc-attorneys.com<mailto:jbitz at whc-attorneys.com> [Email]
www.whc-attorneys.com<http://www.wolffandhislop.com/>


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John Sullivan
Sent: Tuesday, March 22, 2022 1:40 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Elimination of Manufactured Home Owned by Probate Estate on Land Also Owned by Estate

Listmates:

I've been consulted on a problem that makes no sense to me. Maybe one of you have confronted this situation.

Decedent owned separately title (DOL) manufactured home situated on land decedent owned in Kittitas County. PR wants to sell both land and manufactured home and has a buyer, who wants the manufactured home eliminated and affixed to the land. The County Auditor is saying the PR cannot apply for elimination on behalf of the decedent, but must first transfer manufactured home with DOL to PR and pay sales tax. That doesn't make any sense to me. There isn't a "sale" for one thing. Second, it defeats the purpose of having a PR. Third, when the value of the manufactured home is added to the land and sold, wouldn't it result in double taxation with the application of the REET on the sale to the third party buyer?

Any experience with this?
Best regards,
John J. Sullivan
Attorney

Lyons | Sullivan
10655 NE 4th Street, Suite 704
Bellevue, WA  98004
425*451*2400 tel 425-451-7385 fax
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