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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Joshua:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Two thoughts: (1) without embarking on a planned or enforceable series of sales, transfer interests in the trust over time that do not cross the “controlling interest requirement;” or (2) if there are additional assets, e.g., cash, have the grandparents contribute and then do a terminating TEDRA with non-pro rata distributions? Remember the “controlling interest” test was tightened last year. <br><br>Just oof the top, while “attending” the annual estate planning seminar.”<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 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>David Faber<br><b>Sent:</b> Friday, October 30, 2020 10:05 AM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] sale of beneficiary's interest in trust<o:p></o:p></p></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Either way, the answer is "yes there is excise tax" because consideration is being paid in exchange for half of the title interest and no exemption applies under WAC 458-61A that I can see.<o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I'm curious: are Client's children purchasing the interest in the cabin or is the Trustee purchasing?<o:p></o:p></p></div><div><p class=MsoNormal><br clear=all><o:p></o:p></p><div><div><div><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>Best,<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>David J. Faber<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>Faber Feinson PLLC<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>210 Polk Street, Suite 1<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>Port Townsend, WA 98368<br>(360) 379-4110<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif'>*** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL. This communication may contain privileged or other confidential information. If you are not the intended recipient, or believe that you have received this communication in error, please do not print, copy, retransmit, disseminate, or otherwise use the information. Also, please indicate to the sender that you have received this communication in error, and destroy the copy you received.***</span><span style='font-size:12.0pt;font-family:"Arial",sans-serif'><o:p></o:p></span></p></div></div></div></div><p class=MsoNormal><o:p> </o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal>On Tue, Oct 27, 2020 at 6:20 PM Josh Grant <<a href="mailto:jgrant@accima.com">jgrant@accima.com</a>> wrote:<o:p></o:p></p></div><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'>I have a client who is a trustee of an inter vivos trust. The trustors were grandparents of 4 grandchildren (two are clients kids and the other two are nephews).</span><span style='font-size:14.0pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'>The only asset is a lake cabin.</span><span style='font-size:14.0pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'>Only two of the beneficiaries want to have anything to do with the cabin. The 4 have come to an agreement that the client’s kids will buy out the others and have agreed on a price.</span><span style='font-size:14.0pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'>I am wondering if the grandkids were, pursuant to a TEDRA agreement, to purchase the other grandkids’ beneficiary interest in the trust (as opposed to the land itself after termination of the trust) and the trust continued, whether there would be any excise tax payable? I assume so but wanted to check.</span><span style='font-size:14.0pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'>Would there be any benefit in selling/buying a beneficiary’s interest rather than simply terminating the trust and having a sale of the real property?</span><span style='font-size:14.0pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:14.0pt;color:black'> <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'>josh</span><span style='font-size:14.0pt;color:black'><o:p></o:p></span></p></div><div><div><div><div><p class=MsoNormal><strong><span style='font-size:18.0pt;font-family:"Calibri",sans-serif;color:#004080'>Joshua F. Grant</span></strong><span style='font-size:14.0pt;color:#004080'><br></span><span style='font-size:14.0pt;color:black'><img border=0 width=207 height=43 style='width:2.1562in;height:.4479in' id="Picture_x0020_1" src="cid:image001.png@01D6AEB8.0C7DB9F0" alt=advocates></span><span style='font-size:14.0pt;color:black'><br></span><span style='color:#004080'>P. O. Box 619<br>Wilbur, WA 99185<br>509 647 5578</span><span style='font-size:14.0pt;color:black'><o:p></o:p></span></p></div></div></div></div></div></div></div><p class=MsoNormal>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<br>_______________________________________________<br>WSBAPT mailing list<br><a href="mailto:WSBAPT@lists.wsbarppt.com" target="_blank">WSBAPT@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbapt" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><o:p></o:p></p></blockquote></div></div></body></html>