<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<!--[if !mso]><style>v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style><![endif]--><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
span.EmailStyle17
{mso-style-type:personal-compose;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-family:"Calibri",sans-serif;
mso-ligatures:none;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72" style="word-wrap:break-word">
<div class="WordSection1">
<p class="MsoNormal"><span style="font-size:12.0pt">Hi All:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">I have an estate where a beneficiary is going to receive a parcel of real estate that exceeds his share of the estate. He is going to pay the difference between his inherited share and the price of property.
My issue is that when we calculate the Excise Tax (calculated on the amount paid, not the property value) and include it as an estate expense (seller’s cost), it decreases the beneficiary’s share that will be distributed, so it increases the amount he has
to pay in to the estate and thus, increases the amount of the excise tax payable. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Is there any simple way to “fix” this issue? I have considered just having him pay “more” than is required to equalize the distribution and then rebate any extra in the estate back to him. This means he is
“paying” more than he has to for equalization and the estate is paying more in excise tax on the transaction.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Wondering if anyone else has run into this particular issue?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Thanks.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Jane.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Cambria",serif">Jane Bitz<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif">Of Counsel <o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-family:"Cambria",serif">Helping Good People do Great Things!<span style="color:#1F497D"><o:p></o:p></span></span></i></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif">12209 E. Mission Ave., Suite 5<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif">Spokane Valley, WA 99206<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif">(509) 927-9700 (Phone)<o:p></o:p></span></p>
<p class="MsoNormal"><a href="http://www.wolffandhislop.com/"><span style="font-family:"Cambria",serif;color:#0563C1">www.whc-attorneys.com</span></a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><img border="0" width="281" height="48" style="width:2.927in;height:.5in" id="Picture_x0020_1" src="cid:image001.jpg@01DA5070.AA618D10" alt="A close-up of a logo
Description automatically generated"><span style="font-family:"Cambria",serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Cambria",serif;color:#1F497D;mso-ligatures:standardcontextual"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black"><img border="0" width="80" height="70" style="width:.8333in;height:.7291in" id="Picture_x0020_2" src="cid:image002.png@01DA5070.AA618D10"></span><span style="color:black"><img border="0" width="201" height="71" style="width:2.0937in;height:.7395in" id="Picture_x0020_3" src="cid:image003.jpg@01DA5070.AA618D10"></span><span style="color:#1F497D;mso-ligatures:standardcontextual"><o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:8.0pt;font-family:"Times New Roman",serif;color:#1F497D;mso-ligatures:standardcontextual"><o:p> </o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:8.0pt;font-family:"Times New Roman",serif;color:#1F497D;mso-ligatures:standardcontextual">THE CONTENTS OF THIS ELECTRONIC MAIL ARE CONFIDENTIAL AND PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE OR OTHER APPLICABLE
PROTECTION. Any review, use, distribution or disclosure by others is strictly prohibited. If you have received this electronic mail in error, PLEASE NOTIFY ME BY E-MAIL, FAX OR TELEPHONE and PROMPTLY DELETE this electronic mail. This mail cannot be modified
without the express written consent of Wolff, Hislop, & Crockett, PLLC. Thank You.</span></i><span style="mso-ligatures:standardcontextual"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
</body>
</html>