[WSBAPT] Out of State Property in LLC

[Philip N. Jones]

I believe that you are tracking things correctly.
I have never seen any authority saying that the state of formation of the LLC makes a difference.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Tuesday, May 30, 2023 1:56 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBAPT] Out of State Property in LLC

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

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