[WSBAPT] Inherited vehicles- sales tax exemption

Wed Aug 28 18:33:52 PDT 2024

Law Office of F. Andrekita Silva
_____________________________________________________________________________________

August 28, 2024

Alexis,

YES!! That clarifies it for me. What a shame and how sad!!

If I have a scenario like Joshua suggested, I am definitely going to 
think of a generation skipping recommendation. Thanks Joshua!

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

On 2024-08-28 11:28, Alexis Singletary wrote:

> Thank you all for the replies on and off list!  I appreciate the
> feedback and analyses.
> 
> It just is horrible that we have a father's death in 2023 where RV
> goes to son, and then son dies in 2024 so the RV is being inherited by
> _his_ heir; but since son didn't pay sales/excise tax when he got
> the RV from his dad's death, that now son's heir gets to pay the
> $12,000 to transfer title.  (Hope that clarifies, Andrekita. 2 deaths
> with 2 inheritances, no lifetime gifts).
> 
> Yuck.  But, Josh, your GSTT below is a great way to analogize for my
> Heir who gets to come up with the $12,000 if he wants to keep the
> inherited RV.  We may sell it in the probate and give the Heir the
> proceeds instead.
> 
> Best,
> 
> Alexis
> 
> __________________________
> 
> Alexis R. Singletary
> 
> _Attorney at Law_
> 
> Singletary Law Office, PLLC
> 
> (253) 833-8855
> 
> www.SingletaryLawOffice.com [1] [2 [2]]__
> 
> From: wsbapt-bounces at lists.wsbarppt.com
> <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Joshua McKarcher
> Sent: Tuesday, August 27, 2024 10:09 AM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] Inherited vehicles- sales tax exemption
> 
> 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
> 
> www.mckarcherlaw.com [3] [3 [4]]
> 
> 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
> 
> 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 [1] [1 [1]]
> 
> Links:
> ------
> [1] http://www.SingletaryLawOffice.com
> [2] http://www.singletarylawoffice.com/
> [3] http://www.mckarcherlaw.com/
> ***Disclaimer: Please note that RPPT listserv participation is not 
> restricted to practicing attorneys and may include non-practicing 
> attorneys, law students, professionals working in related fields, and 
> others.***
> _______________________________________________
> WSBAPT mailing list
> WSBAPT at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbapt

-- 

Links:
------
[1] http://www.SingletaryLawOffice.com
[2] http://www.singletarylawoffice.com/
[3] http://www.mckarcherlaw.com
[4] http://www.mckarcherlaw.com/
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20240828/953847b9/attachment.html>