[WSBAPT] Intestate Property Distribution

[Diane J. Kiepe]

A much better post than mine 😉

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 <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Joshua McKarcher
Sent: Tuesday, September 13, 2022 10:07 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Intestate Property Distribution

Well first this will not require recording 12 of anything, except perhaps 12 signatures and notary blocks on a single recorded document “at worst.” So don’t let that worry you. 😉

But even that is unnecessary. If you have a court-appointed PR/administrator (easier perhaps than trying to do this by some endless LOPA, of which many are enamored, I acknowledge), then have the PR deed out from husband’s estate to the surviving wife free and clear. One deed covering both parcels if they’re in the same county. Woohoo!

Before doing that, memorialize in a simple TEDRA agreement the gift of the interest from children to mom. Each of the 12 can sign/notarize that one document (in several counterparts even); and if it contains a decent “I represent only the mother and you can get your own legal advice” paragraph, the 12 are “on their own” but can decide for themselves whether this really warrants hiring a lawyer for their 1/12th of 1/2 interest. The TEDRA can, but does not even have to, be filed in the probate matter – do not record it.

If the value of the gift for each kid is less than $16,000 in 2022, you are done.

If it’s more, then you may have some gift tax reporting to do, but for some reason I’m guessing that is just very unlikely here: each kid’s interest is 1/12th of 1/2, before any discounting for each one’s (extremely) minority interest.

So if the combined value of the SP parcels is less than $384,000 there is definitely nothing to think about. If it’s only significantly more, then you may be “safe on the margins” given what is happening here with parents and children and considering a perfectly valid discount for minority 1/24th interest in each child’s hand.

And, heck, it’s September. So, if each parcel is worth $384,000, say, or the total exceeds that, then get the PR appointed and do one distribution and gift in 2022 and a second in early 2023. Each kid can gift $32,000 to his/her mother if you do one gift in 2022 and one in 2023. (Caveat: I do not know if the $16,000 figure jumps to $17,000 in 2023. If it does, then you have even more free gifting to do!)

I’m sure there are several little rabbit trails you could go down, but at a high level that is the idea. Ping me separately if you have questions on the margins. Always want to see a simple solution if we can help find one! 😊

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 Maura McCoy
Sent: Tuesday, September 13, 2022 10:36 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Intestate Property Distribution

Listmates:

We have an oddball intestate probate question! Our client is Wife (W), who was married to Husband (H) who recently passed intestate. H owned SP and CP real property. H and W have 12 kids jointly. All 12 kids have agreed that the two parcels of H’s SP real property can go to their mother, W.

We are struggling with the best way to get the property to W. A disclaimer pursuant to RCW 11.86.041 would cause the SP to go to H’s siblings. But accepting the two parcels and then gifting them to W will be really expensive in both attorneys and recording fees (12 recording fees!).

Any thoughts about the best and least expensive way to proceed?


Maura Senecal McCoy | Associate Attorney
(she/her/hers)

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