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<DIV><FONT size=4>beneficiaries (who are 2 of 4 grandchildren) are
purchasing. I have talked client to a terminating TEDRA distribute to all
4, and then 2 of the beneficiaries will sell their 1/2 to the other 2
beneficiaries. standard R/E sale.</FONT></DIV>
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<DIV><STRONG><SPAN style="FONT-SIZE: 18pt; COLOR: #004080">Joshua F.
Grant</SPAN></STRONG><SPAN style="COLOR: #004080"><BR></SPAN><SPAN
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O. Box 619<BR>Wilbur, WA 99185<BR>509 647 5578</SPAN><SPAN
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<DIV style="font-color: black"><B>From:</B> <A
title=david@faberfeinson.com>David Faber</A> </DIV>
<DIV><B>Sent:</B> Friday, October 30, 2020 10:05 AM</DIV>
<DIV><B>To:</B> <A title=wsbapt@lists.wsbarppt.com>WSBA Probate & Trust
Listserv</A> </DIV>
<DIV><B>Subject:</B> Re: [WSBAPT] sale of beneficiary's interest in
trust</DIV></DIV></DIV>
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<DIV dir=ltr>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.
<DIV> </DIV>
<DIV>I'm curious: are Client's children purchasing the interest in the cabin or
is the Trustee purchasing?</DIV>
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<DIV> </DIV>
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<DIV class=gmail_signature dir=ltr data-smartmail="gmail_signature">
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<DIV style="FONT-SIZE: small; FONT-FAMILY: arial">Best,</DIV>
<DIV style="FONT-SIZE: small; FONT-FAMILY: arial">David J. Faber</DIV>
<DIV style="FONT-SIZE: small; FONT-FAMILY: arial">Faber Feinson PLLC</DIV>
<DIV style="FONT-SIZE: small; FONT-FAMILY: arial">210 Polk Street, Suite 1</DIV>
<DIV style="FONT-SIZE: small; FONT-FAMILY: arial">Port Townsend, WA
98368<BR>(360) 379-4110</DIV>
<DIV style="FONT-SIZE: small; FONT-FAMILY: arial"> </DIV>
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<DIV class=gmail_quote>
<DIV class=gmail_attr dir=ltr>On Tue, Oct 27, 2020 at 6:20 PM Josh Grant
<<A>jgrant@accima.com</A>> wrote:<BR></DIV>
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<DIV><FONT size=4>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).</FONT></DIV>
<DIV><FONT size=4>The only asset is a lake cabin.</FONT></DIV>
<DIV><FONT size=4>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.</FONT></DIV>
<DIV><FONT size=4>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.</FONT></DIV>
<DIV><FONT size=4>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?</FONT></DIV>
<DIV><FONT size=4></FONT> </DIV>
<DIV><FONT size=4>josh</FONT></DIV>
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<DIV style="FONT-SIZE: 14pt; FONT-FAMILY: calibri; COLOR: rgb(0,0,0)">
<DIV><STRONG><SPAN style="FONT-SIZE: 18pt; COLOR: rgb(0,64,128)">Joshua F.
Grant</SPAN></STRONG><SPAN style="COLOR: rgb(0,64,128)"><BR></SPAN><SPAN
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style="FONT-SIZE: 11pt; COLOR: rgb(0,64,128)">P. O. Box 619<BR>Wilbur, WA
99185<BR>509 647 5578</SPAN><SPAN
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