[WSBAPT] Will - Formula - Sale of home to one beneficiary

Tue Oct 11 11:27:28 PDT 2022

This is totally correct. Indeed, most of the time once I do that, we avoid this whole concept because they never dreamed that it wasn't just "simple." Only after thorough vetting, understanding the family, and other "facts that make a big fight over this formula pretty unlikely" do I come up with such a clause. I can't find the one I'm thinking of right now, but if I do I'll share it.

To Heather's most excellent point, I believe my language said county assessed value for year in which death occurs and even tied it objectively to the dates those are released or "whatever."

Do NOT draft such a clause unless you really like puzzles and mysteries and enjoy thinking of ALL possible scenarios you reasonably can and providing simple solutions for them.

Best, Josh

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Kailei Feeney
Sent: Tuesday, October 11, 2022 12:14 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Will - Formula - Sale of home to one beneficiary

To all the excellent points below, I have sometimes found the best teaching exercise with clients is to really dig in and explore some of these "what ifs" and spin the possible unintended consequences. Most really have not thought through some of the admisntration messes we untangle. Then have your letter be clear you drafted this with great input from clients after suggesting it was not your advised plan...for those possibly disgruntled children.

Kailei B. Feeney
Attorney-at-Law
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
kailei at westseattlelaw.com<mailto:kailei 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 Diane J. Kiepe
Sent: Tuesday, October 11, 2022 10:17 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Will - Formula - Sale of home to one beneficiary

I know this wasn't the question but you need to be clear that if all assets go to surviving spouse, there may not be that home to purchase at surviving spouse's death - what happens in that case if there is say a replacement home - do the kids get the right to buy that.

Also, surviving spouse can change his/her Will so what happens after his/her death may look completely different then to 3 kids.

I only point this out because I have seen some children with expectations set by one parent meet utter disappointment on the death of the surviving spouse (especially in blended families).  The good news is that it goes as it should 98% of the time but boy if you are dealing with that 2% it can be a nightmare.

If your client is really wanting to leave a life estate to the surviving spouse that requires different drafting all together (as compared to "all to surviving spouse").

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

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 Joshua McKarcher
Sent: Tuesday, October 11, 2022 10:09 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Will - Formula - Sale of home to one beneficiary

Indeed. Consider using county assessment value times some multiplier IF they feel the county assessment value has been reasonably level for some period of time, etc. etc. Or something like that. This is doable, just make PR or trustee final arbiter of calculation etc. etc. Or provide an option for 2+ siblings who want to buy to put in their "bids" by some process the PR establishes or whatever. If the provision is a good "rulebook" these can work. Good luck! Best, Josh

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 Philip N. Jones
Sent: Tuesday, October 11, 2022 10:44 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Will - Formula - Sale of home to one beneficiary

Give them what they want.  But be specific.  Is it the Zillow estimate on the date of death?  The very next day, that value might be gone.  Is it the Zillow estimate a week later?  Or a month later?  Should an alternate method be listed in case Zillow goes out of business.  Try to think of every possible outcome.
Phil Jones

Get Outlook for iOS<https://aka.ms/o0ukef>
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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 Neli Espe, J.D. - Olympic Legal <neli at olympiclegal.com<mailto:neli at olympiclegal.com>>
Sent: Tuesday, October 11, 2022 6:12:03 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Will - Formula - Sale of home to one beneficiary

Dear List-mates,

PCs (H & W) with three children. Main asset is the house. Wills to state that all assets go to surviving spouse, then to three children in equal shares. Pretty straightforward.

PCs want to include a provision in their Wills that once the survivor spouse passes away, one of their three children should be given the opportunity to buy the house at an easily ascertainable price.  They do not want the realtor commission and the appraisal fee. So, in their mind, they see a formula of Zillow estimate (their view of market price) minus 7% (approximate sales commission).

I have many problems with this approach and have discussed with them at length the proper ways for the PR to handle that matter when the time comes.

Nonetheless, they still want a clause in the wills that does something of this sort.

Any ideas?

Thanks,

Neli
___________________________________
   Neli Espe, J.D., Olympic Legal
                360.630.3635
2114 Commercial Ave., Anacortes
            olympiclegal.com<https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Folympiclegal.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7C3a21036614ba44158f7708daaba3b286%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C638011016815549598%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=Y2rCPJRMKxSotdxMEU7uFP8xlHYIvULVZDR%2B7pxuF2g%3D&reserved=0>
     Estate & Business Planning
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