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<p class="MsoNormal"><span style="color:#1F497D">No tax the payments for the extra share of property is coming out of other assets in the estate not out of the pocket of the heir as identified in the example scenario set out in the WACS<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-family:"Segoe UI","sans-serif";color:#17365D">Bryce H. Dille</span></b><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#17365D"> </span><span style="font-size:7.5pt;font-family:"Segoe UI","sans-serif";color:#B9B9B9">|</span><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#424242"> Attorney
at Law</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#424242">P: 253.848.3513</span><span style="font-size:7.5pt;font-family:"Segoe UI","sans-serif";color:#B9B9B9">|</span><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#424242"> F: 253.845.4941</span><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#424242"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#424242">317 South Meridian<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#424242">Puyallup, WA 98371<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#1F497D"><a href="mailto:bryced@cdb-law.com"><span style="color:blue">bryced@cdb-law.com</span></a></span><u><span style="color:blue"><o:p></o:p></span></u></p>
<p class="MsoNormal"><span style="color:#1F497D"><a href="http://www.cdb-law.com/"><span style="font-size:10.0pt;font-family:"Segoe UI","sans-serif";color:#FF9900">www.cdb-law.com</span></a></span><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;color:#1F497D">This transmission contains confidential attorney-client communications and may not be disclosed to any person but the intended recipient(s). If this matter is transmitted to you in error, please
notify the sender immediately. </span><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Business Entity Creation and Management</span><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Business, Government and Tax Law<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Real Estate and Land Use, Residential, Commercial and Condominium Development<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Real Estate and Commercial Transactions & Closings, Including Performing Services as IRS Section 1031 Exchange Facilitator<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Estate Planning, including Wills and Trusts, and Probate Administration<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Representation Homeowners/Condominium Association Real Estate Developments<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Real Property Foreclosures and Forfeitures<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>Lincoln Miller<br>
<b>Sent:</b> Monday, February 05, 2018 10:19 AM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Non-pro rata distribution; real estate excise tax exemption<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Hypothetical</b>: Decedent’s Will provides for Blackacre to pass equally to Johnny and Sally, with balance of estate to Johnny, Sally and Betty. Blackacre is worth $100,000. Johnny and Sally agree that Johnny will receive all of Blackacre
and Sally will receive an extra $50,000 of assets out of Johnny’s 1/3<sup>rd</sup> share of the residuary. Assume sufficient assets in the estate to accomplish the foregoing.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Question</b>: Is this transaction exempt from excise tax under WAC 458-61A-202 as a nonpro rata distribution?
<o:p></o:p></p>
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<p class="MsoNormal">The situation is slightly different than Examples 1 and 4 from the WAC exemption, as follows:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Example 1. Aunt Mary wills her entire estate equally to her three nieces, Meg, Beth, and Jo. The estate consists of her primary residence, a cottage at the ocean, and significant cash assets, among other things. Rather than take title to
the two parcels of real estate in all three names, the estate may be distributed by deeding the primary residence to Meg, the oceanfront property to Beth, and the majority of the cash assets to Jo.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Example 4. Sheri and her two sisters inherit their father's home, valued at $180,000, in equal portions. Sheri wants sole ownership of the home, but there are not "in-kind" assets of sufficient value to be distributed by the personal representative
to her two sisters in a nonpro rata distribution. In order to take title directly from the personal representative, Sheri pays each of her sisters $60,000, and they quitclaim their right to the property under the will. Real estate excise tax is due on the
total of $120,000 paid for the property.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Lincoln Miller<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><img border="0" width="171" height="24" id="Picture_x0020_2" src="cid:image003.jpg@01D39E6C.26DEF980" alt="Description: logo"><o:p></o:p></p>
<p class="MsoNormal"><span lang="IT" style="font-family:Wingdings"><o:p> </o:p></span></p>
<p class="MsoNormal"><span lang="FR">19586 10th Ave. NE, Suite 300<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="FR">P. O. Box 2172, Poulsbo, WA 98370<o:p></o:p></span></p>
<p class="MsoNormal">(360) 779-4500 (phone)<o:p></o:p></p>
<p class="MsoNormal">(360) 347-1181 (direct)<o:p></o:p></p>
<p class="MsoNormal">(888) 356-8310 (fax)<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:lincoln@lincolnmillerlaw.com"><span style="color:blue">lincoln@lincolnmillerlaw.com</span></a><o:p></o:p></p>
<p class="MsoNormal"><a href="http://www.lincolnmillerlaw.com/"><span style="color:blue">www.lincolnmillerlaw.com</span></a><o:p></o:p></p>
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