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<p class="MsoNormal">That’s the kind of discussion I was hoping to invite. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thank you, <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Jacob<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></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>Philip N. Jones<br>
<b>Sent:</b> Sunday, July 4, 2021 3:42 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Washington Estate Tax/Gifting<o:p></o:p></p>
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<p class="MsoNormal">How does this reduce B’s estate? The transfer of funds from B to A is not a gift. It was made in consideration of the original transfer (the “loan”) from A to B. Does B really have a debt to A that will reduce B’s estate? Is that debt
really going to be paid from B’s estate to A after B dies? Apparently not, particularly after B made the “gift.” This seems like a sham. The transaction has no economic consequence other than tax reduction. Neither A nor B actually changes their economic
situation. It fails the economic substance test. That would seem to invoke the sham transaction doctrine.
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<p class="MsoNormal" style="margin-bottom:12.0pt">Phil Jones<o:p></o:p></p>
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<p class="MsoNormal">Philip N. Jones <o:p></o:p></p>
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<p class="MsoNormal">Duffy Kekel LLP<o:p></o:p></p>
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<p class="MsoNormal">Portland, OR<o:p></o:p></p>
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<p class="MsoNormal"><a href="mailto:pjones@duffykekel.com">pjones@duffykekel.com</a><o:p></o:p></p>
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<p class="MsoNormal">(503) 853-1482 cell<o:p></o:p></p>
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<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">On Jul 2, 2021, at 5:46 PM, Roger Hawkes <<a href="mailto:Roger@law-hawks.com">Roger@law-hawks.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Kudos for thinking of it; if the letter of the law means anything then it works<span style="font-family:"Segoe UI Emoji",sans-serif">😊</span><o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
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<p class="MsoNormal">Roger Hawkes, WSBA # 5173
<o:p></o:p></p>
<p class="MsoNormal"><i><span style="font-size:14.0pt">Shoreline</span></i> Office: 19944 Ballinger Way NE<o:p></o:p></p>
<p class="MsoNormal"> Shoreline, WA 98155<o:p></o:p></p>
<p class="MsoNormal"><i><span style="font-size:14.0pt">Sultan</span></i> Office: 423 Main<o:p></o:p></p>
<p class="MsoNormal"> Sultan, WA 98294<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Phone: 206 367 5000; fax: 206 367 4005<o:p></o:p></p>
<p class="MsoNormal">Email: <a href="mailto:roger@law-hawks.com">roger@law-hawks.com</a>
<o:p></o:p></p>
<p class="MsoNormal">Web site: <a href="http://www.hawkeslawfirm.com/">www.hawkeslawfirm.com</a><o:p></o:p></p>
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<p class="MsoNormal"><image001.jpg><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">
wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Jacob Menashe<br>
<b>Sent:</b> Friday, July 2, 2021 5:36 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] Washington Estate Tax/Gifting<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">I’m not sure who is going to read this at this point going into a holiday weekend, but I am thinking about another situation and I figured I’d throw out another question. I am thinking about someone who is land rich and cash poor and in
poor health. This person would like to gift cash, and not their appreciated real estate. This person could be at the end of their life and wouldn’t be able to secure conventional financing. What I’m thinking about is A lending money to B, secured against B’s
real estate, and then B gifting the cash to A. This would reduce B’s estate. It seems like this could be okay, since A is really lending money to B and B is really taking on a debt. And thus B’s taxable estate can be reduced. But it also seems like something
that could be questioned, because of the nature of the transaction. Does anyone have any thoughts on this?
<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Sincerely, <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Jacob<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Jacob H. Menashe<o:p></o:p></p>
<p class="MsoNormal">Hickman Menashe, PS<o:p></o:p></p>
<p class="MsoNormal">4211 Alderwood Mall Blvd., Suite 204<o:p></o:p></p>
<p class="MsoNormal">Lynnwood, WA 98036<o:p></o:p></p>
<p class="MsoNormal">(425) 744-5658 phone<o:p></o:p></p>
<p class="MsoNormal">(425) 744-6078 fax<o:p></o:p></p>
<p class="MsoNormal">Satellite Office in Bellevue<o:p></o:p></p>
<p class="MsoNormal"><a href="www.hickmanmenashe.com"><span style="color:windowtext">www.hickmanmenashe.com</span></a><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
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