[WSBAPT] Stop me if you've heard this one . . .

[jbdolan at jbdolan.com]

A couple went to see a lawyer who sold them a very adequate but unnecessary
trust, into which they conveyed their residence.  A few years later, seeing
the need for long term care money on the near horizon, they came to my
office to discuss Medicaid planning.  As part of the overall plan, I drafted
a QCD, signed by both husband and wife, both competent, as trustors and
trustees, conveying the residence to the wife.  Wife went to record but was
stopped along the way when she went to the treasurer's office to pay the $10
REETA fee.  I was not there, but I am told the clerk at the desk became
puzzled, went to confer with another clerk, who also appeared puzzled and
went to talk to a third person, who came to the desk and said that they
would not process the QCD because "you can't transfer the house out of the
trust to the wife, you have to transfer the house out of the trust back to
the husband and wife, and then transfer it to the wife," (and pay an
additional $204.50 in recording fees).  There is no mortgage as the house is
paid for.

 

I have done this type of transfer from a trust to a spouse before with no
problems, and I have heard various opinions on whether this is an acceptable
way to convey the residence to a spouse, so I called the local title company
and a very nice title officer told me that conveying the house from the
trust to the wife is "exactly" the way they (the title company) would do it.

 

Before I call the treasurer's office to see if I can persuade them to go
ahead and process the QCD as is, can someone who is smarter than me (I know
you are out there) offer an opinion?  I know that mortgage companies
sometimes want to have real property conveyed out of a trust before being
conveyed to a trustor/trustee/spouse, but as I said there is no mortgage on
this property.

 

Thanks in advance for your thoughts.

 

Jim Dolan

 

=========================

 

Jones Butler Dolan, PS

P.O. Box 458

10027 SR 532

Stanwood, WA 98292

(tel) 360-336-2939

(fax) 360-336-2949

 

 

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