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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>Donna,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I am going through the exact same thing where the estate will owe Washington State tax in excess of six figures. We are selling three properties in King County. Title Company is trying to come up with a solution; we suggested a hold back, which it was not overly excited about. We have not seen its indemnity agreement, yet, but I would advise PR not to sign it if it makes him personally liable. Like your estate, the one I am dealing with has plenty of cash to pay the tax. Plus, the sales themselves will generate substantial cash. I suppose the reason the title company is concerned is that it is very likely the estate tax return will be audited, which might generate more tax. But can the DOR attach former estate real estate after it has been sold to a third party, good faith, purchaser? I will let you know what solution we arrive at.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Jeff<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><b><span style='font-family:"Tahoma",sans-serif'>W. Jeff Davis<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'>BELL & DAVIS PLLC</span></b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'><br>P.O. Box 510<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'>720 E. Washington Street, Suite 105<br>Sequim WA 98382<br>Phone: (360) 683.1129 <br>Fax: (360) 683.1258 <br>email: </span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'><a href="mailto:jeff@bellanddavispllc.com">jeff@bellanddavispllc.com</a><span style='color:black'><br></span></span><a href="http://www.bellanddavispllc.com/" target="_blank"><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:blue'>www.bellanddavispllc.com</span></a><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'><br> <br>The information contained in this e-mail message may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, any dissemination, distribution, or copying is strictly prohibited. If you think that you have received this e-mail message in error, please e-mail the sender at </span><a href="mailto:info@bellanddavispllc.com"><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:blue'>info@bellanddavispllc.com</span></a><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black'> or call 360.683.1129.</span><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><b><o:p> </o:p></b></p></div><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>Donna Calf Robe<br><b>Sent:</b> Thursday, May 6, 2021 8:16 AM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> [WSBAPT] Title Co - indemnity agreement<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>List mates:<o:p></o:p></p><p class=MsoNormal>I recently opened a probate and soon after opening, the PR found a buyer for the estate owned house and closing is schedule for today. A week ago the title company requested the usual letter that there were no taxes owing. The estate will owe WA estate tax of I’m guessing about $55k, but there are plenty of funds to pay the tax. The title company requested the PR sign a very broad indemnity agreement in both her personal and individual capacity. She is not a beneficiary. They initially wanted other beneficiaries to sign as well, but there are many and some are minors so they dropped that request. I advised her against signing it. The title company then send another indemnity agreement yesterday afternoon, which is a little less broad, but not much, and includes an agreement that they can hold $55k back until the taxes are paid (which may be 18 months), and they can use the $55k to offset any of their damages, without notice. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I have not encountered a title company demanding this type of indemnification or holdback. Usually they are satisfied when I include in the tax letter that the estate has sufficient funds to pay the tax. I’m inclined the tell the PR to use a different title company, but the PR is anxious to get the sale completed. <o:p></o:p></p><p class=MsoNormal>Have others run into this? I don’t know if its now a standard practice, in which case going to another title company may not help. <o:p></o:p></p><p class=MsoNormal>Thank you, <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal style='background:white'><b><i><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:#1F497D'>Donna</span></i></b><o:p></o:p></p><p class=MsoNormal style='background:white'><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:#1F497D'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Donna M. Calf Robe<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Attorney<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Brothers & Henderson, P.S.<o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-family:"Times New Roman",serif;color:black'>2722 Eastlake Avenue East, Suite 200</span><span style='font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-family:"Times New Roman",serif;color:black'>Seattle, Washington 98102</span><span style='font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-family:"Times New Roman",serif;color:black'>Phone: (206) 324-4300 x113</span><span style='font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-family:"Times New Roman",serif;color:black'>Fax: (206) 324-3106</span><span style='font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-family:"Times New Roman",serif;color:black'>e-mail: <a href="mailto:donnac@brothershenderson.com">donnac@brothershenderson.com</a></span><span style='font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-family:"Times New Roman",serif;color:black'><a href="http://www.brothershenderson.com/"><span style='color:blue'>www.brothershenderson.com</span></a></span><span style='font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal style='background:white'><span style='font-family:"Times New Roman",serif;color:black'><img border=0 width=196 height=56 style='width:2.0416in;height:.5833in' id="Picture_x0020_3" src="cid:image001.jpg@01D74254.8C0B5D00"></span><span style='font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Times New Roman",serif;color:black'>The information transmitted in this e-mail message and attachments is attorney-client information, is privileged or confidential material and is intended only for the use of the individual or entity named above. You are hereby notified that any disclosure, copying, distribution, review by or taking of any action in reliance on the contents of this e-mail information by unauthorized persons is strictly prohibited. All personal messages are solely the views of the sender and are not to be attributed to Brothers & Henderson, P.S. If you have received this transmission in error, immediately notify the sender by reply e-mail and permanently delete this transmission and all copies including attachments.</span><span style='font-size:10.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p></div><p class=MsoNormal><o:p> </o:p></p></div></body></html>