[WSBAPT] Deed signed prior to death (not recorded and no REETA executed)

Thu Jan 4 11:22:50 PST 2024

I recently saw this done without a probate in California, relating to
California properties -- the CA attorney had helped the person sign a
couple of Quit Claim Deeds many years ago, conveying the properties to the
person's Revocable Living Trust that the CA attorney had also helped the
person sign many years ago, on the same date that the deeds were signed --
but the plan had apparently been for the CA attorney to hold the original
deeds in his client file until learning that the client had died, at which
time the CA attorney would proceed to record the deeds.  I don't know who
signed the CA equivalent REETA for the grantor and grantee before recording
-- possibly this was not required in CA, but I would expect there is a CA
equivalent.  The CA county apparently accepted this post-mortem recording
without any issue. I was informed that this CA attorney said that this
procedure is something they do "all the time."   I have not (yet) inquired
further.  I am guessing that this procedure must have something to do with
the CA property tax re-assessment rules, Prop 13, etc., but I would have
assumed that a person's transfer into an RLT (a disregarded entity for
most, if not all, other tax purposes) would not trigger any reassessment.

At first blush, I don't think this would fly in Washington, for the same
reasons this question is being asked.  And I would never advise with this
arrangement.  The basic notion of holding original client deeds for years,
potentially decades (as happened in this case), with an ongoing custodial
duty to record the deeds post-mortem, makes me verrrrry nervous.  What if
the attorney retires, or dies? Yikes.

*Sarah O’Farrell McCarthy*

*(Pronouns: she / her)*Attorney, Partner | Kelly, Arndt & Walker, Attorneys
at Law, PLLP
P.O. Box 290 | 6443 Harding Avenue | Clinton, WA  98236

(Located on Whidbey Island, Island County, Washington)
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On Thu, Jan 4, 2024 at 10:36 AM Heather de Vrieze <
heatherd at westseattlelaw.com> wrote:

> Julie,
>
>
>
> I would consider opening probate to execute a new deed (inheritance) based
> on the provision of the Will. While I can see arguments on both sides of
> this, I am concerned that the lifetime deed (gift) would not qualify the
> beneficiary for a step-up in basis, or would be harder to argue when the
> deed/REETA/supplement are executed as a gift.
>
>
>
> Probate and a deed out of the estate provides clarity. (for title too)
>
>
>
> Heather
>
>
>
> Heather S. de Vrieze
> *Attorney-at-Law*
>
> 3909 California Avenue SW
>
> Seattle, WA 98116-3705
>
> (206)938-5500
>
> heatherd at westseattlelaw.com
>
> www.westseattlelaw.com
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> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Julie Martiniello
> *Sent:* Thursday, January 4, 2024 10:08 AM
> *To:* Trust and Probate Section <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] Deed signed prior to death (not recorded and no REETA
> executed)
>
>
>
> Hello All,
>
>
>
> I have a Client where Decedent executes a deed transferring title prior to
> his death. However, no REETA was done and the deed was not recorded. This
> is the only asset in the estate. Client intends to keep the property and no
> plans to sell or finance- or I would just ask the title company their
> requirements. Decedent's Will also bequeathed property to the Client.
>
>
>
> My thoughts are that no one has legal authority to sign as the Grantor(or
> Agent for Grantor), without being appointed as PR by a court. It seems like
> a lot to open a probate for this one signature. I wanted to see if anyone
> has thoughts on if there are any other solutions or if someone can sign the
> REETA on behalf of the Decedent without a probate?
>
>
>
> --
>
>
>
> Respectfully,
>
>
>
> Julie Martiniello, Partner
>
> Dimension Law Group, PLLC
>
> *Office:*  206-973-3500│*Fax:*  206-577-5090
>
> *Email: **julie at dimensionlaw.com <synthia at dimensionlaw.com>*
>
> *www.dimensionlaw.com <http://www.dimensionlaw.com/>*
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>
> 631 Strander Blvd, Bldg A, Suite G, Tukwila, WA 98188
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