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<p class="MsoNormal">If there are other assets in the estate, you may be able to make a non-pro rata allocation of estate assets so that the sister gets more than 50% of the residence and the brother gets other assets. We have done that to minimize the purchase
portion and the excise tax.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<font size="4" color="#777777"><span style="FONT-FAMILY: 'Calibri','sans-serif'"><font size="3"><font color="#000000"><o:p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Calibri','sans-serif'">
<p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Calibri','sans-serif'; MARGIN: 0in 0in 6pt"><span style="FONT-FAMILY: 'Calibri','sans-serif'">Amy Lewis,
Attorney<br>Pronouns she/her/hers<br></span><img style="HEIGHT: 68px; WIDTH: 211px" src="cid:Logo_fa335a1d-9f24-4802-a3dd-b58f259e3c98.png" width="211" height="68" border="0"><br></p></o:p></font></font></span><span style="FONT-SIZE: 11pt; FONT-FAMILY: 'Calibri','sans-serif'"><span style="COLOR: #000000"><span style="FONT-SIZE: 11pt; FONT-FAMILY: 'Calibri','sans-serif'">909 A Street, Suite
600 | Tacoma, WA 98402<br></span><span style="FONT-SIZE: 11pt; FONT-FAMILY: 'Calibri','sans-serif'"><strong style="COLOR: #000000"></strong>phone 253.572.4500 | fax 253.272.5732
|</span></span></span><span style="FONT-SIZE: 11pt; FONT-FAMILY: 'Calibri','sans-serif'"> </span><a href="http://www.eisenhowerlaw.com/"><span style="FONT-SIZE: 11pt; TEXT-DECORATION: none; FONT-FAMILY: 'Calibri','sans-serif'; COLOR: #c00000; text-underline: none">www.eisenhowerlaw.com</span></a></font>
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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>Inge Fordham<br>
<b>Sent:</b> Thursday, September 15, 2022 12:00 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Sibling buying out other<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I would think you could put the agreement in a TEDRA that both parties sign and, assuming no existing mortgage, sister could purchase the house from the estate in the agreed-upon amount that sister is paying brother. The transaction would
trigger excise tax on 50% of the purchase (as it will obviously be below FMV) and also has gift tax implications. I don’t see any way around that (but some of our creative colleagues just might).<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:3.0pt"><b><span style="font-size:13.0pt;font-family:"Cambria",serif;color:#203864">Inge A. Fordham | Attorney</span></b><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-size:12.0pt;font-family:"Cambria",serif;color:black">Fordham Law, PLLC</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">From: </span></b><span style="font-size:12.0pt;color:black"><<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>> on behalf of "michael
<a href="http://westseattleattorney.com">
westseattleattorney.com</a>" <<a href="mailto:michael@westseattleattorney.com">michael@westseattleattorney.com</a>><br>
<b>Reply-To: </b>WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Date: </b>Thursday, September 15, 2022 at 11:38 AM<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] Sibling buying out other<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;color:black">Hi,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;color:black">Two siblings , brother and sister with sister buying out brouther. Bank saying that it has to be sister buying real property from the estate. Will that require them to pay the
1.78% excise tax? Any way to avoid that like giving real property to sister and have her refinance the real property and just give brother the money? <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;color:black">Thanks <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;color:black">mike <o:p></o:p></span></p>
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