[WSBAPT] HOLD BACK FOR TAXES DUE TO LARGE ESTATE

[michael westseattleattorney.com]

Thank you


[cid:7804b84a-c21d-4b60-9480-95d3cdd2065a]
________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Brent Williams-Ruth <brent at williams-ruthlaw.com>
Sent: Friday, October 18, 2024 6:56 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] HOLD BACK FOR TAXES DUE TO LARGE ESTATE

What I do in those situations - and maybe it is not the right option (I'm open to learning from others) is that we simply don't close the estate until we get the green light from DOR/IRS. I have the executor send me a monthly message advising that we are still pending for the outcome. I do a "lion's share" distribution of assets to beneficiaries keeping the amount to hold back AND a substantial cushion just in case the CPA's numbers are wrong......then wait.

That has worked well in the large estates that I have had that had taxable filings either with  DOR or both DOR/IRS.  I only use the tax holdback for small estates (like my mother's) where the CPA was saying, we "should" get a small refund - so I closed the estate leaving $3,000 behind until the final tax return was resolved. Then I distributed the $3,000 and the refund amount to my sister and I.

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>

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On Fri, Oct 18, 2024 at 6:49 AM michael westseattleattorney.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__westseattleattorney.com&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=KEDnavIX0T95_e0xmmP7pHPEymbbSteROH3HpiSq79g&m=0SKKScaOCWXMJgHgE9pd9T3EinWHXekFa8wqRh_IKzhtXCEbEkVFe3lQ56Jixd6z&s=SS03g5Ohau702t7e1TPLkH5cRPmhBgT8jc-LZRGyPSw&e=> <michael at westseattleattorney.com<mailto:michael at westseattleattorney.com>> wrote:
PR is advised by the CPA to hold back $746,000 for taxes. Since RCW 11.68.114 limits the holdback to $3000,  other than not filing the Declaration of Completions is there another option?
Separately, I came across references to special language in the Declaration of Completion, and a special type of Notice of Filing of Declaration of Completion must also be used. Would anyone know what this is?
Thanks,
Mike

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