[WSBAPT] Succession Tax, Inheritance Tax, Estate Tax

[Philip N. Jones]

I have always wondered how title companies deal with estates that are selling real estate, when an estate tax lien might be present. But then I remembered that title insurance policies always exclude any liability for any liens that do not show up as a matter of record, and estate tax liens typically are not recorded.
Comments?
Phil Jones

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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: Monday, December 4, 2023 10:36:02 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>; WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Succession Tax, Inheritance Tax, Estate Tax


I interpret this question as an inquiry as to whether the estate will owe any estate taxes.  I believe this is an attempt on the part of escrow/title to limit liability for releasing sale proceeds where taxes may be owed by the estate.  Title gurus may have more to say on this…



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Inge A. Fordham | Attorney

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Eric Nelsen <eric at sayrelawoffices.com>
Date: Monday, December 4, 2023 at 9:45 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>, WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBAPT] Succession Tax, Inheritance Tax, Estate Tax

Okay, can someone enlighten me here? I know the difference between estate tax and inheritance tax: an estate tax is paid by the decedent’s estate and is typically based on the estate’s whole value, while an inheritance tax (which Washington doesn’t have) is paid by the beneficiary of an estate and is based on what that beneficiary receives.



But in real property transactions when an Estate is selling real property, I routinely see title companies refer to a “lien of succession tax.” Whattheheck is a succession tax? Black’s law dictionary appears to liken it to an inheritance tax, but Washington hasn’t had one of those since 1981<https://leg.wa.gov/CodeReviser/documents/sessionlaw/1981ex2c7.pdf?cite=1981%202nd%20ex.s.%20c%207%20%C2%A7%2083.100.010>.



Sincerely,



Eric



Eric C. Nelsen

Sayre Law Offices, PLLC

1417 31st Ave South

Seattle WA 98144-3909

206-625-0092

eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>


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