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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Adding to what Marcus said – if you have a beneficiary who basically wants to purchase the house and have a portion of their share go towards the purchase price, and you add to that an estate
that does not have sufficient assets to cover that transaction, then you want to be really careful with the math so that you calculate the purchase price correctly. Depending on how you approach it, you may not have an exact amount of their final distribution,
so you are estimating the sale price.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Another thing we usually want is for all the beneficiaries to sign off on the price the house is being sold for. When a fiduciary is selling a house that is not exposed to the public market
– there is always the risk that there could be a challenge from the other beneficiaries as to the price.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Regards, <o:p>
</o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Mark<o:p></o:p></span></p>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:14.0pt;font-family:"Bradley Hand ITC"">Ohana Fiduciary Corp.<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:14.0pt;font-family:"Bradley Hand ITC""><o:p> </o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:14.0pt;font-family:"Bradley Hand ITC"">A Washington Chartered Trust Company</span><span style="font-size:10.0pt;font-family:"Bradley Hand ITC""><o:p></o:p></span></p>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Bradley Hand ITC"">Mark C. Vohr, J.D., CPG, Principal<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Bradley Hand ITC"">155 NE 100<sup>th</sup> St., Suite 209 Seattle, WA 98125<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Bradley Hand ITC"">T: (206) 782-1189 F: (206) 782-1434<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Calisto MT",serif"><a href="mailto:mcv@ohanafc.com"><span style="font-family:"Calibri",sans-serif">mcv@ohanafc.com</span></a></span><span style="font-size:12.0pt">
</span><span style="font-size:12.0pt;font-family:"Calisto MT",serif"><a href="http://www.ohanafc.com/"><span style="font-family:"Calibri",sans-serif">www.ohanafc.com</span></a><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>Marcus J. Fry<br>
<b>Sent:</b> Thursday, November 18, 2021 4:57 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Sale of Residence to one Beneficiary<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Paul:<o:p></o:p></p>
<p class="MsoNormal">If there are insufficient other assets in the estate, the estate just enters into a PSA with the purchasing beneficiary to sell the house at the value less the beneficiary’s one-third share. For example, if the FMV of the house is $300,000,
the beneficiary purchases the house for $200,000. There would be excise tax anyway you slice it in this scenario with a purchase because you do not have other assets of the estate to equalize the distribution per your statement. I should note often time
the parties agree to reduce the FMV a bit further before dividing given the fact that the parties are saving on realtor commissions. If the beneficiary does not want to put anything down for their loan, you have to tweak things a bit to have the estate “distribute”
the beneficiary’s one-third share at time of sale. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><br>
<strong><span style="font-family:"Arial",sans-serif">Marcus J. Fry</span></strong><br>
Attorney | Witherspoon • Kelley<br>
<a href="mailto:mjf@witherspoonkelley.com">mjf@witherspoonkelley.com</a> | <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.witherspoonkelley.com_marcus-2Dj-2Dfry&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=K1mLMC1eFjwfeeMM-AC6zQ&m=k-6mHiydaFDEsoS3eww1XjfRLre_Wu1vOJqyTsiGVkg&s=t76VOWWWGFsa89YIyX9vfwfjOp91meVt2_VjmGUqTtQ&e=">
Attorney Profile</a> | <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.witherspoonkelley.com_s_mfj.vcf&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=K1mLMC1eFjwfeeMM-AC6zQ&m=k-6mHiydaFDEsoS3eww1XjfRLre_Wu1vOJqyTsiGVkg&s=P6pe0LqSKpRPAM5WndZVVLePYMba0xwFzlDJRLe4qEo&e=">
vCard</a><o:p></o:p></span></p>
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<p align="right" style="text-align:right"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:white">222 N. 3rd Street<br>
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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>Paul Neumiller<br>
<b>Sent:</b> Thursday, November 18, 2021 4:38 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] Sale of Residence to one Beneficiary<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoPlainText">Listmates, I have a probate where one beneficiary wants to purchase the family home from his two siblings. So, nuts and bolts. How does this work? Does the PR use a PR deed to transfer the residence to the 3 siblings (excise tax free)
and then the two siblings sell their 2/3<sup>rds </sup>interest to the buying sibling (with excise tax on the transfer of the 2/3rds interest?) (I can’t imagine the two siblings happy to pay the excise tax.) There is not enough other assets in the estate
to distribute the house completely to the buying sibling. It seems cumbersome for the buying sibling to purchase the residence directly from the estate for full price and then receive 1/3<sup>rd</sup> of the proceeds back. (AND, the buying sibling can’t come
up with the full price anyway) Plus then there might be excise tax on the full value of the residence. So how do you guys do this? <o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText"><a name="Paul_A__Neumiller"><img border="0" width="250" height="150" style="width:2.6041in;height:1.5625in" id="Picture_x0020_1" src="cid:image002.jpg@01D7DC9F.9CB2E700" alt="Paul A_ Neumiller"></a><o:p></o:p></p>
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