[WSBAPT] Sibling buying out other

[michael westseattleattorney.com]

Interesting - thanks

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________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Inge Fordham <inge at fordhamlegal.com>
Sent: Thursday, September 15, 2022 11:59 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Sibling buying out other


I would think you could put the agreement in a TEDRA that both parties sign and, assuming no existing mortgage, sister could purchase the house from the estate in the agreed-upon amount that sister is paying brother.  The transaction would trigger excise tax on 50% of the purchase (as it will obviously be below FMV) and also has gift tax implications.  I don’t see any way around that (but some of our creative colleagues just might).



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Inge A. Fordham | Attorney

Fordham Law, PLLC

3218 Sixth Avenue | Tacoma, WA 98406

Office: (253) 348-2657 | Mobile: (206) 778-3131

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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of "michael westseattleattorney.com" <michael at westseattleattorney.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Thursday, September 15, 2022 at 11:38 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Sibling buying out other



Hi,

Two siblings , brother and sister with sister buying out brouther. Bank saying that it has to be sister buying real property from the estate. Will that require them to pay the 1.78% excise tax?  Any way to avoid that like giving real property to sister and have her refinance the real property and just give brother the money?

Thanks

mike



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