[WSBAPT] HOLD BACK FOR TAXES DUE TO LARGE ESTATE

[Lewis, Amy C.]

This is our practice as well.  We almost never use the tax holdback, because the amount is too small for most probates and it requires additional documentation of the use of the reserve when you are done.

If you do want to use the reserve option, the language for the Declaration of Completion and the Notice of Filing are set out in RCW 11.68.114.


Amy Lewis, Attorney
Pronouns she/her/hers
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909 A Street, Suite 600 | Tacoma, WA 98402
phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com<http://www.eisenhowerlaw.com/>
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
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

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e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.williams-ruthlaw.com/> / facebook<http://www.facebook.com/bwrlaw> /


On Fri, Oct 18, 2024 at 6:49 AM michael westseattleattorney.com<http://westseattleattorney.com> <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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