[WSBAPT] Out of State Property in LLC

[Brent Williams-Ruth]

Greetings List Members -

I am growing excited for the Mid-Year in Walla Walla coming up this
weekend.

I recall the DOR changing the rules regarding LLC ownership of property in
2020 (link to guidance for ease of reference -
https://dor.wa.gov/sites/default/files/2022-03/sn_20_EstateTaxTreatment.pdf

Maybe I am reading too much into the words that are not present on the DOR
guidance - but does it matter if the LLC is NOT a Washington LLC? Example,
lets say we have a Washington resident, who inherited 100% interest in a
California LLC that holds four different parcels of land/homes scattered
around California.

Would that still be treated as intangible property? The guidance does not
differentiate on the location of the LLC.

For my hypothetical - because my PC is a Washington resident, even if
deemed intangible, an out of state LLC holding properties out of State will
still be taxed under the Washington estate tax.  Yes?

What is catching me is WAC 458-57-125 (link for ease of reference) -
https://apps.leg.wa.gov/wac/default.aspx?cite=458-57-125

Because the properties are held by the LLC, and now under the 2020 DOR
guidance that LLC is deemed to be intangible property and 458-57-125(3)(c)
states Intangible personal property of a decedent is located in Washington
if the decedent was a resident of this state at death.

Just seeking confirmation that I am tracking this right....I am thrown off
because this came to my office by someone writing and stating (to start)
that by having it as an LLC they can avoid the Washington Estate Tax.

Thank you!

*Brent Williams-Ruth* (pronouns: he/him)
*Attorney-At-Law*

*Law Offices of Brent Williams-Ruth, **a division of BWR Consulting, PLLC*

*Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*

***EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to
the following address: **PO BOX 3319; Federal Way, WA 98063 *

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail <Brent at Williams-RuthLaw.com> / website
<http://www.williams-ruthlaw.com/> / facebook
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