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<p class="MsoNormal"><span style="color:#1F3864">Kira, there are a lot of facts that would need to be considered but an option that you may have is to codify the agreement of the beneficiaries under a non pro-rata exchange and distribution agreement. It may
be that the best thing to do is to distribute the properties outright to the individual and from there to personal LLCs/revocable trusts because generally, a distribution of one’s own property to their own LLC or revocable trust is exempt from REETA. Just
based on what you describe, it <u>seems</u> like this could be handled without REET applying but what the Will/Trust/Pshp agmt say may have an influence.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F3864"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F3864">Best, Claudia<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F3864"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F3864"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:12.0pt;font-family:ParkAvenue;color:#1F3864">Claudia A. Gowan<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><b><i><span style="color:#1F3864"><o:p> </o:p></span></i></b></p>
<p class="MsoNormal" style="line-height:9.0pt;mso-line-height-rule:exactly"><b><span style="color:#1F497D">Claudia A. Gowan, PLLC<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:#1F497D">2212 Queen Anne Avenue No., # 338 (Mailing only)<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:#1F497D">Seattle, WA 98109<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:#1F497D">(206) 443-2733 (T)<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:#1F4E79"><a href="mailto:claudia@cagowanlaw.com"><span style="color:#1F4E79">claudia@cagowanlaw.com</span></a>
<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="color:#1F3864"><o:p> </o:p></span></p>
<p class="MsoNormal"><a href="https://www.bestlawyers.com/lawyers/claudia-a-gowan/141568"><span style="color:#0563C1;text-decoration:none"><img border="0" width="164" height="55" style="width:1.7083in;height:.5729in" id="Picture_x0020_2" src="cid:image002.jpg@01D6E513.E67672F0"></span></a><span style="color:#1F3864"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="color:#1F4E79"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><u><span style="color:#1F4E79"><a href="http://www.seattletrustsandestates.com/"><span style="color:#0563C1">www.seattletrustsandestates.com</span></a></span></u></b><span style="color:#1F3864"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><u><span style="color:#1F497D">Recognizing the risk of coronavirus for our clients and colleagues, we are working remotely. Our direct email and telephone contact information, which has not changed, along with a permanent mailing address
is noted above.</span></u></b><span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Kira Rubel<br>
<b>Sent:</b> Thursday, January 07, 2021 3:20 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Excise tax on inherited properties of FLP and RLT<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Hello list! <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><o:p> </o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">I have three clients who <span class="gmail-il">inherited</span> 9 <span class="gmail-il">properties</span> from their now-deceased parents, <span class="gmail-il">out</span> of
the parents' Family Limited Partnership and the parents' living trust. Now, we're in the process of transferring title to each child's LLC or living trust. <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">The parents did not leave specific <span class="gmail-il">properties</span> to specific kids, rather all <span class="gmail-il">properties</span> were left to all three children. The
three adult children decided among themselves how to divide up the <span class="gmail-il">properties</span> (and cash). Each child is taking 3 <span class="gmail-il">properties</span> in their entirety. <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">My office spoke with the DOR-<span class="gmail-il">Excise</span> <span class="gmail-il">Tax</span> department and they said we might have an <span class="gmail-il">excise</span> <span class="gmail-il">tax</span> problem
for 2 reasons. One, all properties were left to all 3 kids to divy up as they please. Two, is it even possible to transfer the properties directly from the parents' FLP/RLT to each child's LLC or own living trust? <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Has anyone done this in practice? I'm concerned about getting the WAC exemption correct!<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Many thanks! <o:p></o:p></p>
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<p><i><span style="font-size:13.5pt;font-family:"Cambria",serif">Kira M. Rubel, Esq.</span></i><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p></o:p></span></p>
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<i><span style="font-size:10.0pt;font-family:"Cambria",serif">*Licensed in CA and WA</span></i><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p></o:p></span></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#222222"><o:p> </o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><b><span style="font-family:"Georgia",serif;color:#222222">The Harbor Law Group </span></b><span style="color:#222222"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Georgia",serif;color:#222222">(<i>formerly, Law Office of Kira M. Rubel</i>)</span><span style="color:#222222"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><b><span style="font-family:"Georgia",serif;color:#222222">3615 Harborview Drive NW, Suite C (on the dock)</span></b><span style="color:#222222"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><b><span style="font-family:"Georgia",serif;color:#222222">Gig Harbor, WA 98332-2129</span></b><span style="font-family:"Georgia",serif;color:#222222"> </span><span style="color:#222222"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Georgia",serif;color:#222222">CA Bar No. 253970 / WA Bar No. 51691</span><span style="color:#222222"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Georgia",serif;color:#222222">Tel. (253) 358-2215 | (800) 836-6531</span><span style="color:#222222"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Georgia",serif;color:#222222">Fax. (253) 358-2191</span><span style="color:#222222"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><u><span style="font-family:"Georgia",serif;color:#1155CC"><a href="https://theharborlawgroup.com/" target="_blank">https://theharborlawgroup.com/</a></span></u><o:p></o:p></p>
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