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Yes, that was the old rule. Now the WDR treats all LLCs as intangible, regardless of business purpose.
<div>Phil Jones<br>
<br>
<div dir="ltr">Philip N. Jones
<div>Duffy Kekel LLP</div>
<div>Portland, OR</div>
<div>pjones@duffykekel.com</div>
<div>(503) 226-1371</div>
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<div dir="ltr"><br>
<blockquote type="cite">On Jul 30, 2020, at 5:19 PM, Kailei Feeney <kailei@westseattlelaw.com> wrote:<br>
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<p class="MsoNormal"><span style="font-size:11.0pt">Good point, although wasn’t the WA Rule qualified by the business purpose? If the WA LLC holding real estate operates for a true business purpose, then its intangible? If not, tangible?
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Am I oversimplifying?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Kailei Feeney<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt">From:</span></b><span style="font-size:11.0pt"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Philip N. Jones<br>
<b>Sent:</b> Thursday, July 30, 2020 4:51 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Residency and representation question<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;color:#1F497D">If they are likely to be exposed to the Washington (and Oregon) estate tax, they might be better off using LLCs, rather than trusts. The recently-announced change in the WA Dept. of Revenue
policy deals with LLCs, not trusts, as I understand it. So now Oregon and Washington both honor LLCs as intangible assets for purposes of the fractional estate tax formula. And Alaska has no estate tax.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">I express no opinion on where their legal residence is.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Phil Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Portland, OR<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt">From:</span></b><span style="font-size:11.0pt">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Jennifer Johnson<br>
<b>Sent:</b> Thursday, July 30, 2020 3:21 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] Residency and representation question<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">Hello all,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Potential clients would like to put multiple pieces of Washington real property and one parcel of Oregon real property into a trust for estate planning purposes. In talking to them, they stated that, though
they are currently living in one of their Washington homes, they consider themselves Alaska residents (one of the spouses wants to reside permanently in Washington but they’re still discussing that). They vote in Alaska, receive most of their mail there,
and have their vehicles registered there. They just recently sold their real estate there, though, and stay with a daughter when they go back.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">My immediate question is, is there an issue I’m not thinking of when it comes to preparing their trust for them and having its situs be in Washington? The trust situs RCW states that the situs can be Washington
if an interest in real property located in Washington is an asset of the trust. Is there a reason that I should be referring them to Alaska counsel since they seem to be Alaska residents?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">I appreciate any advice you all may have.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Jennifer<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><i>Jennifer M. Johnson</i><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Attorney<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:11.0pt">Hanigan Law Office, PS<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:11.0pt">PO Box 39 - 68 Main Street<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:11.0pt">Cathlamet, WA 98612<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:11.0pt">(360) 795-3494<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:11.0pt">(360) 795-3001 (f)<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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