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<p class="MsoNormal">Since it is a estate expense and assuming he is a 1/3 heir to avoid the issue as described in your e-mail why doesn't he pay 1/3 of the excise tax by agreement and then have the other 2/3 of the excise tax chargeable 1/3 each to the other
two heirs. Therefore his share will not be reduced by the amount of the excise tax when it is paid out and will not affect what he pays for the property.<o:p></o:p></p>
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<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Bryce H. Dille</span><o:p></o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Dille Law, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">2010 Caton Way SW Ste. 101<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Olympia, WA 98502<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">This transmission contains confidential attorney-client communications and may not be disclosed to any person but the intended recipient(s). If this matter is transmitted to you in error,
please notify the sender immediately. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Business Entity Creation and Management, Business, Government and Tax Law, Real Estate and Land Use, Residential, Commercial and Condominium Development Real Estate and Commercial Transactions
& Closings, Including Performing Services as IRS Section 1031 Exchange Facilitator Estate Planning, including Wills and Trusts, and Probate Administration Representation Homeowners/Condominium Association Real Estate Developments Real Property Foreclosures
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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>Jane Bitz<br>
<b>Sent:</b> Friday, January 26, 2024 4:00 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Estate Distribution Issue re: Excise Tax<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<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>
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