<html 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"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>As long as the transfer is from a wholly revocable trust and dad is the sole trustee, it is a gift for REET purposes. This assumes the trust agreement authorizes direct gifts. Older ones required distribution out so the grantor could make the gift, for Internal Revenue Code reasons that were repealed. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I might consider having the father do a resolution as Grantor instructing himself as Trustee to make the gift.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>John J. Sullivan<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Matt Yates<br><b>Sent:</b> Monday, August 17, 2020 3:56 PM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> [WSBAPT] Gift from Trustee/Beneficiary of RLT to Contingent Beneficiary<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Client is a CA resident whose Revocable Living Trust holds a rental property in SW WA that he has rented out to his son for some time. Client wanted to gift rental house to his son but son has decided to move to NV. Client now wants to gift house to son and have son sell so that son gets proceeds. If we presume that Trustee has gifting powers (in this case, Client/father is trustee and beneficiary) and client in capacity as trustee gifts directly from Trust to son, is the transaction exempt from REET pursuant to WAC 458-61A-201? For now, I am not concerned about encumbrances and assumption thereof and paying the REET on the “consideration.” I simply want to know if this is considered a gift for purposes of applying the exemption. I hate it when the WAC exemptions use the term “generally.” <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I’m also ignoring for now the potential of accelerating the balance due upon transfer. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>My original advice to client was, if he wanted to be certain it was exempt except from any REET, he should simply deed out of trust to himself (mere change of identity) and then gift it to son from him personally (gift). Title Co rep has indicated that if it is represented as a gift, title co really doesn’t go beyond that and is willing to do deeds for client (deed from trust to son and then associated deed for sale). <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Any expertise is appreciated. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Matthew D. Yates<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Yates Marshall, PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>10000 NE 7th Avenue, Suite 200<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Vancouver, WA 98685<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Phone: (360) 449-6100<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Fax: (360) 449-6111<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><a href="mailto:matt@yatesmarshall.com">matt@yatesmarshall.com</a> (<b>New Email Address</b>)<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><a href="http://www.yatesmarshall.com">www.yatesmarshall.com</a><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>