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<p class="MsoNormal"><span style="font-family:"Garamond","serif"">I have used a Note with annual gifting by the payees in a similar situation. It was a family and the family members trusted each other, which would make a difference. This eliminated the tax
issues.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Garamond","serif";color:black">Lisa E. Schuchman<br>
206-960-4212<br>
<a href="http://www.lisaschuchman.com/" target="_blank"><span style="color:blue">www.lisaschuchman.com</span></a><br>
<br>
There are no passengers on spaceship earth. We are all crew. - Marshall McLuhan<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Garamond","serif";color:black">NOTE: I do not use encrypted email. Messages sent to or from my office via email are not secure and may not be protected by attorney-client privilege. This email address is not monitored
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<p class="MsoNormal"><span style="font-family:"Garamond","serif";color:black">Any tax advice included in this document and its attachments was not intended or written to be used, and it cannot be used, for the purpose of avoiding penalties under the Internal
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</span><b><span style="font-size:7.5pt;font-family:"Arial","sans-serif";color:#008100">Please consider the trees before printing this document</span></b><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<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>jeffrey winter<br>
<b>Sent:</b> Wednesday, November 16, 2016 4:31 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] Sibling buy out<o:p></o:p></span></p>
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<p><span style="font-family:"Calibri","sans-serif";color:black">Listmates,<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">I have an estate where mom died leaving 3 beneficiaries -- two children, and the surviving spouse of a third child who survived the parent, but died shortly afterward. Surviving spouse takes the
deceased child's share under a Community Property Agreement (Will had specified to the three children "share and share alike", with no provision for descendants of a deceased child taking...).<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">One child is residing in mom's home, and wishes to stay there (the "taking child") -- the other child and the surviving spouse of the decease child, would like the taking child to be able to live
at mom's house, but wish to be protected in the event it is sold. The plan presently is for mom's estate to convey the house to the taking child, subject to a note and second deed of trust in favor of the sibling and surviving spouse. The sibling and surviving
spouse intend to forgive the payments due under the note, but -- in the event the house is sold-- would have their interests protected.<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">There will be a TEDRA outlining this arrangement -- the question is: do we refer to the intent to forgive payments under the note in the TEDRA? I would think that to be fair to the taking child,
we would...but I'm concerned about what effect this might have with respect to excise and/or income taxes.<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">Jeff Winter<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">Law Office of Jeffrey D. Winter, P.S.<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">604 North Main Street<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">Ellensburg, WA 98926<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">(509) 925-9600<o:p></o:p></span></p>
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