[WSBAPT] Inherited vehicles- sales tax exemption

Tue Aug 27 10:08:52 PDT 2024

Yes, Alexis, it’s a bit “wild,” but consider it a loosely and certainly imperfect analogous “generation skipping transfer tax” 😉 on the second inheritance without an intervening sales/use tax payment.

As a lifelong Washington kid, when I encountered this rule the first time, I rationalized it by figuring (1) we have no income tax or (for the most part) lifetime gift tax, (2) titled vehicles are easy to monitor, value, and tax, (3) excise, use, and sales taxes are rigorously enforced in lieu of income tax, (4) each gift/inheritance of a titled vehicle is “robbing” the state of a sales- or use-taxed purchase of a vehicle, and so (5) it’s easy to justify (and implement mechanically) a policy by which we all get only “one tax-free transfer” of a titled vehicle ordinarily subject to sales/use tax upon transfer.

Not that any of that helps you or your client in any way at all, except to try to understand “why” legislators might choose that option. Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com<mailto:josh at mckarcherlaw.com>
www.mckarcherlaw.com<http://www.mckarcherlaw.com/>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Andrekita Silva
Sent: Tuesday, August 27, 2024 12:04 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Inherited vehicles- sales tax exemption

Law Office of F. Andrekita Silva
_____________________________________________________________________________________

August 26, 2024

Alexis,

I ordinarily have the PR transfer the title directly to the beneficiary. Since it is inherited, they do not pay  sales tax.

If the beneficiary then tries to transfer it to a different beneficiary, then it is true, that second transfer will trigger sales tax.
A vehicle can only be gifted and/ or inherited ONCE.  For purposes of Dept. of License, they do not distinguish between receiving a GIFT or receiving an INHERITANCE.

If you do this twice in a row, the second transfer incurs a sales tax.

So, its not clear what you mean when you say that the RV was transferred to his son in 2023.
Do you mean the PR transferred the title into son's name?

If PR transferred the title into son's name in 2023, what is it that son is trying to do now?
Again, if son is trying to transfer title to a different beneficiary, that second transfer incurs an assessment of taxes.

Andrekita Silva
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 940
Seattle, Washington 98101-2509
206-224-8288
ak at seattle-silvalaw.com<mailto:ak at seattle-silvalaw.com>

On 2024-08-26 22:09, Alexis Singletary wrote:
I have a Decedent who passed in 2024 but had inherited an RV from his
dad in 2023 - transfer all fine to son in 2023. No sales tax due since
inherited.  Now, Decedent’s heir ready to put the RV into his name
and Dept of Licensing wants about $12,000 in sales tax “because you
cannot transfer a vehicle without sales tax two times in a row.”

I guess I have never experienced this in any probate and cannot seem
to put my hand on the cite.

Thank you!

Best,

Alexis

__________________________

Alexis R. Singletary

_Attorney at Law_

Singletary Law Office, PLLC

(253) 833-8855

www.SingletaryLawOffice.com<http://www.SingletaryLawOffice.com> [1<http://www.singletarylawoffice.com/>]

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>
<wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Brent Williams-Ruth
Sent: Monday, August 26, 2024 4:45 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>>
Subject: [WSBAPT] PPM - Transfer of Guns

RCW 11.12.260 - does not prohibit the use of a Personal property
memorandum for guns. I thought I had recall of that being discussed as
part of the no-no list at a CLE, but I am not finding it in my course
materials going back two years.

Was I making that up in my head? I also did a quick search for case
law and came up short. Appreciate confirmation one way or the other if
you know it!

Thank you,

brent

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

Mailing Address: PO BOX 3319; Federal Way, WA 98063

Office/Scheduling Phone: (253) 285-7751

For All Meetings & Scheduling: info at williams-ruthlaw.com<mailto:info at williams-ruthlaw.com>

e-mail / website [2<http://www.williams-ruthlaw.com/>] / facebook [3<http://www.facebook.com/bwrlaw>] /

Links:
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[2] http://www.williams-ruthlaw.com/
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