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<p class="MsoNormal">Sharon,<o:p></o:p></p>
<p class="MsoNormal">I’ve done this a few times, feel free to give me a call. I think there are a few other driving factors:<o:p></o:p></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">Are there any assets besides the house, especially equal in value to the house? Because then PR can do non-pro rata distribution of house to himself, and give cash/other assets to
the other beneficiary.<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">Is the house encumbered? If yes, does the PR want to try to keep the mortgage, or are they open to refinancing?<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">Does PR want title insurance (he should, because he probably cannot rely on decedent’s title insurance)? If yes, then need to structure with title company so they are willing to insure.
They will typically charge for insurance on the full value of the property, even if the consideration is only half the value of the property.<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">Does the other bene want cash now? If no, then PR can deed house to himself, and give the other bene a note/DOT for half the value and pay over time.<o:p></o:p></li></ol>
<p class="MsoNormal">Looming in the background is whether or not excise tax will be due, how much, who pays, etc. It’s a bit of an art rather than a science. If the parties all have the same last name, there is someone at DOR that will often issue a routine
audit (SOL is 3 years + the year you record, so if you record today, DOR has until 12/31/27 to audit). If they have different last names, I have not had clients audited yet, but keep in mind that DOR views these transactions suspiciously.<o:p></o:p></p>
<p class="MsoNormal">Best, <o:p></o:p></p>
<p class="MsoNormal">Nick<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">Nicholas Pleasants | Shareholder
<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><span style="color:#70AD47"><img width="223" height="95" style="width:2.3229in;height:.9895in" id="Picture_x0020_1" src="cid:image001.jpg@01D937DB.B10EC140" alt="OseranHahnAttyatLaw 8"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#70AD47"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">11225 SE 6<sup>th</sup> Street | Suite 100 | Bellevue, WA 98004<br>
Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail: <a href="mailto:npleasants@ohswlaw.com">
npleasants@ohswlaw.com</a> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:#1F497D">CONFIDENTIALITY NOTE: This e-mail message contains information belonging to the law firm of Oseran Hahn, P.S., which may be privileged,
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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>Sharon Rutberg<br>
<b>Sent:</b> Friday, February 3, 2023 8:00 AM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] probate question re buying out bene's share of real property<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Greetings – <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I have a probate where the decedent’s residuary estate is divided 50-50 between two unrelated persons. The main asset is a house. One of the beneficiaries is also the PR.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The PR is interested in ending up with the house. What is the best way for him to purchase the other beneficiary’s share (assuming she is agreeable)? Does he need to take out a mortgage for one-half of the house value and pay her with
the proceeds? Will a mortgage company agree to that? Does he need to transfer the house to the two of them first via a PR deed and then arrange the buy-out, or can he do it prior to making that transfer?
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Appreciate your wisdom!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sharon <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Sharon C. Rutberg, Attorney at Law</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Salmon Bay Law Group, PLLC</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">1734 NW Market St.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Seattle, WA 98107</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">206-735-3177, ext. 2</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><a href="mailto:sharon@salmonbaylaw.com"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">sharon@salmonbaylaw.com</span></a></span><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">
</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Website:
<a href="http://www.salmonbaylaw.com/">www.salmonbaylaw.com</a></span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Washington State Bar #47055<br>
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