[WSBAPT] Real Property Transfer Out of Trust

Thu Aug 13 14:59:11 PDT 2026

Thank you all for the insights and resources!

Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock Street, Suite 209, PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Thursday, August 13, 2026 1:46 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Cc: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Real Property Transfer Out of Trust

See:
https://www.hca.wa.gov/free-or-low-cost-health-care/i-help-others-apply-and-access-apple-health/life-estates

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of David Kincaid
Sent: Thursday, August 13, 2026 1:17 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Cc: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Real Property Transfer Out of Trust

I believe a life estate is worth a percentage of the property's total value and counts toward the individual's asset limit. This may make Medicaid eligibility difficult.

On Thu, Aug 13, 2026 at 1:05 PM Nick Pleasants <npleasants at ohswlaw.com<mailto:npleasants at ohswlaw.com>> wrote:
Mark,
The trick that I have seen before is a grantor-retained life estate. See, e.g., http://archives.cpajournal.com/2001/0700/dept/d076301.htm
Not sure how retaining a life estate will affect Medicaid.
This is not intended to be tax advice to anyone. Consult your own CPA.
Best,
Nick
Nicholas Pleasants | Shareholder
[OseranHahnAttyatLaw 8]
11225 SE 6th Street | Suite 100 | Bellevue, WA 98004
Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail: npleasants at ohswlaw.com<mailto:npleasants at ohswlaw.com>
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Mark Anderson
Sent: Tuesday, August 11, 2026 2:53 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>; WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBARP] Real Property Transfer Out of Trust

Dear Mates:
PC wants to transfer real property out of her revocable trust to one of the contingent beneficiaries so that PC can qualify for Medicaid.  [The transfer would be exempt from the look back period under WAC 182-513-1363(4)(d)(iv)].
If the transfer is characterized as a gift, I understand there would be no step up in basis for the purpose of capital gains tax.  PC has owned the property since the beginning of time, so the capital gains impact would be great.
Are there any other options for structuring or characterizing this transaction that would result in a step up in basis for the beneficiary?
Thanks in advance.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock Street, Suite 209, PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.mbaesq.com_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=-GmOVePHrMxpHDsqhlpu0IV7jy1tkCWDKAKJmc3TDcg&m=Rquct2LHzjrT3YOetLl_BJiNNSlGfFrXstlA4HM-LA-093pltiWt8MlvOY6N521x&s=RC4PM4Uc2Jyzm7bSWA7d6dS5HolpoFinu2bQZy_DdbI&e=>
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--
Best,
David Kincaid
Kincaid Law PLLC
(360) 914-9204
www.davidkincaidlaw.com<http://www.davidkincaidlaw.com>

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