[WSBAPT] Sale of house to heir with credit for inheritance share - and REET

[Brian Wichmann]

I'm usually just a lurker... but you provide so much to this list serve that I'm moved to respond.  Attached is an example accepted by King County a couple of months ago
Brian


Brian Wichmann
Attorney at Law
15201 Military Rd S
SeaTac, WA 98188

(206) 244-7433



________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Eric Nelsen <eric at sayrelawoffices.com>
Sent: Wednesday, November 8, 2023 5:06 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Sale of house to heir with credit for inheritance share - and REET


Estate sells house to an heir for defined Purchase Price of $500,000, and provides a credit of $50,000 against the Purchase Price as a partial distribution of inheritance.



What should Real Estate Excise Tax be calculated upon?



  1.  $450,000, because the consideration received is only that? BUT: Do the parties list $450,000 as the Purchase Price on the REET Affidavit, despite the prima facie specification of $500,000 as the Purchase Price? Or does escrow valiantly attempt to list $500,000 as the Purchase Price, list an exemption for $50,000 and cite the inheritance WAC and provide the proper documentation, and then cross fingers and pray it doesn’t get screwed up?
  2.  $500,000, because it’s better to pay more tax than it is the deal with the deed getting bounced because it looks funny to somebody at the recorder’s office?



The form does seem to allow for a partial exemption, but I’ve never attempted it. Does it actually work?

[cid:image001.png at 01DA1265.E73ECB60]



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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