<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:Verdana;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:"Georgia Pro";}
@font-face
{font-family:"Monotype Corsiva";
panose-1:3 1 1 1 1 2 1 1 1 1;}
@font-face
{font-family:"Comic Sans MS";
panose-1:3 15 7 2 3 3 2 2 2 4;}
@font-face
{font-family:Webdings;
panose-1:5 3 1 2 1 5 9 6 7 3;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:"Arial Narrow";
panose-1:2 11 6 6 2 2 2 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:#0563C1;
text-decoration:underline;}
span.EmailStyle20
{mso-style-type:personal-reply;
font-family:"Georgia Pro",serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;
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;font-family:"Georgia Pro",serif">The Seller owes the excise tax, but the Buyer can
<i>pay</i> some or all the excise tax, which is what you may want to do under your scenario below.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Georgia Pro",serif"><o:p> </o:p></span></p>
<div>
<div id="divtagdefaultwrapper">
<div>
<div id="divtagdefaultwrapper">
<div>
<div>
<p class="MsoNormal"><span style="font-size:16.0pt;font-family:"Monotype Corsiva";color:blue">Stuart Scarff, Esq.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Comic Sans MS";color:navy">3035 Island Crest Way, Suite 201</span><span style="font-size:9.0pt;font-family:"Times New Roman",serif;color:navy"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Comic Sans MS";color:navy">Mercer Island, WA 98040</span><span style="font-size:9.0pt;color:navy"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Comic Sans MS";color:navy">206.236.1500<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Comic Sans MS";color:navy">206.905.5912 (fax)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Comic Sans MS";color:navy"><a href="http://www.scarfflaw.com/"><span style="color:blue">www.scarfflaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><a href="http://www.facebook.com/ScarffLawFirm"><span style="color:blue;text-decoration:none"><img border="0" width="24" height="24" style="width:.25in;height:.25in" id="Picture_x0020_4" src="cid:image004.png@01DA537B.34F44F00" alt="Description: FaceBook-icon"></span></a><span style="color:#1F497D">
</span><a href="http://www.linkedin.com/pub/stuart-scarff/2/706/97"><span style="color:blue;text-decoration:none"><img border="0" width="24" height="24" style="width:.25in;height:.25in" id="Picture_x0020_5" src="cid:image005.png@01DA537B.34F44F00" alt="Description: Linked-In-icon"></span></a><span style="color:#1F497D"> </span><a href="http://www.scarfflaw.com/"><span style="color:#1F497D;text-decoration:none"><img border="0" width="186" height="70" style="width:1.9375in;height:.7291in" id="Picture_x0020_6" src="cid:image006.png@01DA537B.34F44F00"></span></a><span style="font-size:9.0pt;font-family:"Comic Sans MS";color:navy"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.5pt;font-family:Webdings;color:#008040">P</span><span style="font-size:7.5pt;font-family:"Verdana",sans-serif;color:#008040"> Please consider the environment before printing this e-mail</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:7.5pt;color:navy">This message and any attachments hereto are intended for the exclusive use of the addressee and may contain proprietary, confidential and/or privileged information. If you are not the intended recipient,
please delete this message and notify me immediately that you received this message in error; and do not copy, disclose or distribute this message to anyone.</span><o:p></o:p></p>
</div>
</div>
</div>
</div>
</div>
</div>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Georgia Pro",serif"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Mark Anderson<br>
<b>Sent:</b> Tuesday, January 30, 2024 9:48 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Estate Distribution Issue re: Excise Tax<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060">Given the initial scenario, one way you could handle it would be for the Estate to distribute a percentage ownership of the real property to the Beneficiary (equal
to the inherited share) and have the Estate retain the remainder as a tenant-in-common. Then the Beneficiary buys the remainder from the Estate. Without any agreement to the contrary, the Estate would pay the excise tax on this transaction. I think this
is an appropriate expense of the Estate (and not the Beneficiary) as a cost of administering the disposition of the real property. In the past, I have had all Beneficiaries enter into an agreement under which the excise tax would be paid for by the Estate
– this would have the effect of placing the burden of the excise tax on all Beneficiaries.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060;mso-ligatures:standardcontextual">Mark B. Anderson<br>
</span></b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060;mso-ligatures:standardcontextual">ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com"><span style="color:#002060">marka@mbaesq.com</span></a><br>
<a href="http://www.mbaesq.com/"><span style="color:#002060">www.mbaesq.com</span></a><b><o:p></o:p></b></span></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial Narrow",sans-serif;color:#002060;mso-ligatures:standardcontextual">CONFIDENTIALITY NOTICE<br>
</span></b><span style="font-size:10.0pt;font-family:"Arial Narrow",sans-serif;color:#002060;mso-ligatures:standardcontextual">This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the
attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of
this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<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>Jane Bitz<br>
<b>Sent:</b> 01/26/2024 4:00 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] Estate Distribution Issue re: Excise Tax<o:p></o:p></p>
</div>
</div>
<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>
<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">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:image007.jpg@01DA537B.34F44F00" 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:image008.png@01DA537B.34F44F00"><img border="0" width="201" height="71" style="width:2.0937in;height:.7395in" id="Picture_x0020_3" src="cid:image009.jpg@01DA537B.34F44F00"></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>