<html><head></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; color: rgb(0, 0, 0); font-size: 14px; font-family: Calibri, sans-serif;"><div><div><div>How about a transfer on death deed to convey the property into the trust for the husband’s interest in the Washington property? I’m not sure if Idaho has a similar provision. See RCW 64.80. </div><div><br></div><div><div><p style="margin: 0px;"><span style="letter-spacing: 0px;"><font face="Garamond">Kate Gamble</font></span></p><p style="margin: 0px;"><span style="letter-spacing: 0px;"><font face="Garamond">Attorney at Law</font></span></p><p style="margin: 0px;"><span style="letter-spacing: 0px;"><font face="Garamond">Uptown Law PLLC</font></span></p><p style="margin: 0px;"><span style="letter-spacing: 0px;"><font face="Garamond" size="2"><br></font></span></p><p style="margin: 0px;"><span style="letter-spacing: 0px;"><font face="Garamond" size="2"><b>CONFIDENTIALITY NOTICE:</b> This email, including any attachments, is confidential and subject to legal privilege. The information contained in this message is intended only for the use of the above named recipient. If you are not the intended recipient, you are hereby notified that any dissemination, disclosure, or copying of this communication, including all attachments, is strictly prohibited, and subject to penalty. If you have received this communication in error, please immediately notify us by return email and telephone at 360-379-1818; then please destroy this original message and all attachments. Thank you.</font></span></p><p style="margin: 0px;"><br></p><p style="margin: 0px;"><span style="letter-spacing: 0px;"><font face="Garamond" size="2"><b>SPECIAL NOTICE TO CLIENT(S): </b>If you are a client and this email is directed to you, DO NOT FORWARD to any other party, or you could be waiving the attorney -client privilege</font></span></p></div><div><span style="letter-spacing: 0px;"><font face="Garamond" size="2"><br></font></span></div></div></div></div><div><br></div><span id="OLK_SRC_BODY_SECTION"><div style="font-family:Calibri; font-size:11pt; text-align:left; color:black; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: #b5c4df 1pt solid; BORDER-RIGHT: medium none; PADDING-TOP: 3pt"><span style="font-weight:bold">From: </span> Lovie Bernardi <<a href="mailto:lovie@sbfirm.com">lovie@sbfirm.com</a>><br><span style="font-weight:bold">Reply-To: </span> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br><span style="font-weight:bold">Date: </span> Monday, February 2, 2015 at 1:53 PM<br><span style="font-weight:bold">To: </span> <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br><span style="font-weight:bold">Subject: </span> [WSBAPT] Due on Sales Clause and transfers to trust<br></div><div><br></div><div xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><meta http-equiv="Content-Type" content="text/html; charset=us-ascii"><meta name="Generator" content="Microsoft Word 12 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--><div lang="EN-US" link="blue" vlink="purple"><div class="WordSection1"><p class="MsoNormal">Dear listmates:<o:p></o:p></p><p class="MsoNormal"><o:p> </o:p></p><p class="MsoNormal">I have a client whose wife passed away. The couple owned multiple properties in Idaho and Washington, most with substantial mortgages. The wife had been living in Washington for medical treatment for many years when she passed away while the husband lived in Idaho most of the time. We filed a probate here in King County and an ancillary probate is being handled by an attorney in Idaho. The will instructed the PR (husband) to place the wife’s portion of the community property in a living trust that was established before her death. She died before any of the property was transferred to the trust, hence the two probates. Interestingly, the trust did not become irrevocable upon the death of the wife.<o:p></o:p></p><p class="MsoNormal"><o:p> </o:p></p><p class="MsoNormal">The husband wants to transfer both his wife’s interest and his interest in the properties to the trust, in order to avoid a double probate at the time of his own death. (He will probably still be an Idaho resident.) My concern is whether the transfer will trigger the due on sale clauses in the mortgages. Most of the mortgages are with Chase. I have reviewed the exemptions from the due on sale clause under 12 USCS Section 1701j-3(d). The transfer of the wife’s interest falls under exemption (d)(3) (“a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by entirely”). But does the husband’s transfer of his interest fit under (d)(8) (“a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to the transfer of rights of occupancy”)?<o:p></o:p></p><p class="MsoNormal"><o:p> </o:p></p><p class="MsoNormal">Am I safe to transfer both the wife’s interest and the husband’s interest in the properties without triggering the due on sale clause? I attended a trust CLE last August which suggested the transfer of real estate to a trust during lifetime might trigger the due on sale clause. Does anyone have experience with this issue and/or suggestions for me? Thank you in advance for your input.<o:p></o:p></p><p class="MsoNormal"><o:p> </o:p></p><p class="MsoNormal"><o:p> </o:p></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">Lovie Bernardi</span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">Attorney at Law</span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">Seligmann & Flaherty, PLLC</span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">216 First AVE S, #450</span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">Seattle, WA 98104</span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">(206) 682-2616<o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 12pt; font-family: Arial, sans-serif;"><o:p> </o:p></span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><a href="mailto:joni@sbfirm.com"><span style="color:blue">lovie@sbfirm.com</span></a></span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><a href="http://sbfirm.com/"><span style="color:blue">http://sbfirm.com</span></a></span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></p><p class="MsoNormal"><span style="font-family: Arial, sans-serif;"> <o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">**********<o:p></o:p></span></p><p class="MsoNormal"><span style="font-size: 10pt; font-family: Arial, sans-serif;">This e-mail may contain information that is privileged, confidential or otherwise protected from disclosure. If you are not the intended recipient or otherwise have received this message in error, you are not authorized to read, print, retain, copy or disseminate this message or any part of it. If you are not the intended recipient or otherwise have received this message in error, please notify us immediately by e-mail, discard any paper copies and delete all electronic files of the message. <i>Circular 230 Notice: This communication may not be used by you or any other person or entity for the purpose of avoiding any federal tax penalties.</i></span><span style="font-size:12.0pt"><o:p></o:p></span></p><p class="MsoNormal"><o:p> </o:p></p></div></div></div>_______________________________________________
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