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

[Julie Martiniello]

Thank you all- helps to confirm my thought process. I think if the REETA
has been signed, then recording would not be an issue- My gut was just
telling me that signing a REETA on behalf of the deceased requires the
probate.

And I did tell the Client the stepped up basis is probably worth the
probate process!

On Thu, Jan 4, 2024 at 11:47 AM Philip N. Jones <pjones at duffykekel.com>
wrote:

> Yikes indeed.  Although it sounds easy, inexpensive, etc., lots of
> problems could surface.  What if the client forgets about the deed in your
> file and goes out and signs and records a different deed, and then dies.
> What do you do?  (I had that happen once.)  What if the client’s estate
> plan changes due to remarriage, death of a beneficiary, etc.?  And after
> your client dies, who exactly is your client?  And (as you mention) you die
> or retire?  And will a title insurance company be willing to insure title
> based on a deed recorded years later, after death.  And then there are
> issues with using a quitclaim deed.  The list of issues goes on and on . .
> .
>
> I suggest that we not hold unrecorded deeds for our clients.  Ever.  As
> noted above, I did it once.  Never again.
>
> Phil Jones
>
>
>
> Philip N. Jones
>
> Duffy Kekel LLP
>
> 900 S.W. Fifth Ave. Suite 2500
>
> Portland, OR 97204
>
> 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 *Sarah McCarthy
> *Sent:* Thursday, January 4, 2024 11:23 AM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] Deed signed prior to death (not recorded and no
> REETA executed)
>
>
>
> 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)
> Phone: (360) 341-1515 | Fax: (360) 341-3272
> sarah at kawlawyers.com | www.kawlawyers.com
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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
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> heatherd at 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
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> *Email: **julie at dimensionlaw.com <synthia at dimensionlaw.com>*
>
> *www.dimensionlaw.com <http://www.dimensionlaw.com/>*
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-- 


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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