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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>The answer is no – there are no property tax implications upon recording of the condo declaration and survey map and plans (SMAP), regardless of how title is held. You do not even have to pay advance taxes like you do when you record a plat. You do have to pay the current year’s taxes in full. If there is a loan on the property, the lender has to sign off on the SMAP, but they are generally happy to do so, since splitting one tax parcel into two is deemed to increase the value of the property. The assessor will likely increase the tax assessment for the same reason, the next time it is re-assessed. The SMAP must be signed by the treasurer, but only to declare that the current year’s taxes are paid in full.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Heather Kolbly<br><b>Sent:</b> Friday, January 16, 2015 7:20 AM<br><b>To:</b> wsbapt@lists.wsbarppt.com<br><b>Subject:</b> [WSBAPT] duplex in trust converting to condos<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Hi All,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>I have a unique situation (for me anyway) with a client who wants to place her duplex in a living trust to benefit herself and her daughter initially, and then the adult grandkids for their lives. Client owns a duplex (one tax parcel #) and she is getting ready to have the two units separated into 2 condos (2 tax parcel #s) using a Condo Declaration (she’s doing that on her own without my help). Client currently lives in one unit and her adult daughter lives in the other. When Client dies, she wants her unit to be rented out to a 3<sup>rd</sup> party and the rent collected for the benefit of her 3 adult grandkids. She wants the duplex/condos held in trust and she and the daughter will be initial co-trustees, then daughter will be sole trustee after Client dies. A professional trustee will likely take over after daughter eventually dies. I guess my main starter question is about the property tax implications – I know there’s no property tax triggered by placing Client’s property in a living trust, but does anyone know if there is a prop. tax triggered by converting the duplex to 2 separate condos after the duplex is placed in trust? If so, I am guessing it’s the same tax implication as it would be if the property was not in trust, but I’d like to be able to give the client some initial guidance on that if possible, and I’d like to learn more about it myself. I’ve checked the WAC exemptions, and I don’t see anything addressing this so far.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Thanks for any help you can offer,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Heather Kolbly<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal align=center style='text-align:center'><b><i><u><span style='font-family:"Castellar","serif";color:#1F497D'><o:p><span style='text-decoration:none'> </span></o:p></span></u></i></b></p><p class=MsoNormal><b><span style='font-size:14.0pt;font-family:"Goudy Old Style","serif";color:#1F497D'>Heather Tobin Kolbly<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:14.0pt;font-family:"Goudy Old Style","serif";color:#1F497D'>Mobile Attorney <o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:14.0pt;font-family:"Goudy Old Style","serif";color:#1F497D'>KOLBLY LAW FIRM, P.C.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-family:"Goudy Old Style","serif";color:#1F497D'>Mail:</span></b><span style='font-family:"Goudy Old Style","serif";color:#1F497D'> 704 228<sup>th</sup> Ave. NE #122, Sammamish, WA 98074<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-family:"Goudy Old Style","serif";color:#1F497D'>Office:</span></b><span style='font-family:"Goudy Old Style","serif";color:#1F497D'> (425) 522-4234 </span><span style='font-family:Wingdings;color:#1F497D'>s</span><span style='font-family:"Goudy Old Style","serif";color:#1F497D'> <b>Cell:</b> (425) 444-1888 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><a href="mailto:Heather@KolblyLaw.com"><span style='font-size:12.0pt;font-family:"Goudy Old Style","serif";color:#1F497D;text-decoration:none'>Heather@KolblyLaw.com</span></a></span><span style='font-family:"Goudy Old Style","serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><a href="http://www.kolblylaw.com/"><span style='font-size:12.0pt;font-family:"Goudy Old Style","serif";color:#1F497D;text-decoration:none'>www.KolblyLaw.com</span></a></span><span style='font-family:"Goudy Old Style","serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Goudy Old Style","serif";color:#1F497D'> </span><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> </span></b><span style='font-size:11.0pt;font-family:"Goudy Old Style","serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><b><span style='font-size:11.0pt;font-family:"Goudy Old Style","serif";color:#CC0000'>CONFIDENTIALITY: </span></b><b><span style='font-size:11.0pt;font-family:"Goudy Old Style","serif";color:#1F497D'>This e-mail and its attachments are confidential and may be protected by attorney/client privilege, work product doctrine, or other nondisclosure protection. If you are not the intended recipient of this e-mail, please contact the sender immediately; you may not read, disclose, print, copy, store or disseminate the e-mail or any attachments or any information contained therein.<o:p></o:p></span></b></p><p class=MsoNormal style='text-align:justify'><b><span style='font-size:11.0pt;font-family:"Goudy Old Style","serif";color:#C00000'>IRS CIRCULAR 230 DISCLOSURE:</span></b><b><span style='font-size:11.0pt;font-family:"Goudy Old Style","serif";color:black'> To ensure compliance with new requirements of the Internal Revenue Service, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.<o:p></o:p></span></b></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Book Antiqua","serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Book Antiqua","serif";color:#1F497D'><o:p> </o:p></span></p></div></body></html>