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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">I would tend to go this route that Eric suggests as well. It is more protective of the non-occupying owners and more clarifying of the intentions.
<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 think if you deed it out to the taking heir with notes to the non-taking heirs you have income tax issues to sort through, and other issues that could cause
problems later which could be spelled out in a tenant in common agreement.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Heather<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Eric Nelsen<br>
<b>Sent:</b> Wednesday, November 16, 2016 5:04 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Sibling buy out<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Under that structure, I don't think you would mention the intent to forgive payments, since there is no reason for the holders to waive their rights in advance.<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">But I'd consider a different structure: Transfer the property to all three as tenants in common, then do a TIC agreement between them that says taking child
has sole right of occupancy conditioned on paying all taxes and maintenance/repair, and keeping the property fully insured, not committing waste, etc.; have a provision prohibiting partition; have another provision confirming that the parties own it in equal
shares and will receive one-third of net proceeds directly upon sale without any offset for expenses paid by taking child. There would be a few other bells and whistles, but that makes sure the other two share automatically in any increase or decrease in market
value of the property and will get paid in full at the time it sells. I think it is safer to have the tenant in common interest than a mere monetary interest secured by a deed of trust.<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">My two cents, based on minimal information...<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>
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<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Calibri",sans-serif;color:red">Please Note that We Have Moved.</span></b><b><span style="font-family:"Calibri",sans-serif;color:#1F497D">
</span></b><span style="font-family:"Calibri",sans-serif;color:#1F497D">We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel).
<b>Our new address is 1417 31st Avenue South, Seattle WA 98144. </b>All other contact information remains the same.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><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">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>]
<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 class="MsoNormal"><o:p> </o:p></p>
<div id="divtagdefaultwrapper">
<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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