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<p class="MsoNormal">Peter,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sometimes writing it all out is all it takes. You’ve nailed it. Assuming all is as you say, it is by far simpler to have Bob inherit; document the adjusted basis on inherited half (and of course his existing basis in his half); gift the
entire thing to Anyone He Wants To; make sure they have that documented basis information (because they receive carryover basis); ensure he files the federal gift tax return that will surely apply to his gift of the entire interest (at FMV, notice, not basis,
because something here must be complicated); and then move on with life.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The inheritance and the gift are both exempt from REETA, yes.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Good luck!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">All the best, Josh<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Peter D. Haroldson<br>
<b>Sent:</b> Thursday, October 30, 2025 3:57 PM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Gift / Disclaimer of Asset to Child<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"><b><span style="font-size:9.0pt;font-family:"Open Sans",sans-serif;color:black">IRONSCALES couldn't recognize this email as this is the first time you received an email from this sender peter</span></b><b><span style="font-size:1.0pt;font-family:"Open Sans",sans-serif;color:black">
</span></b><b><span style="font-size:9.0pt;font-family:"Open Sans",sans-serif;color:black">@</span></b><b><span style="font-size:1.0pt;font-family:"Open Sans",sans-serif;color:black">
</span></b><b><span style="font-size:9.0pt;font-family:"Open Sans",sans-serif;color:black">torresharoldson.com<o:p></o:p></span></b></p>
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<span style="font-size:9.0pt;font-family:"Segoe UI",sans-serif;color:#212121">You don't often get email from
<a href="mailto:peter@torresharoldson.com">peter@torresharoldson.com</a>. <a href="https://aka.ms/LearnAboutSenderIdentification">
Learn why this is important</a> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black">Hello:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">My client ("Bob") is the PR and sole heir/beneficiary of his mother's estate. There is no surviving spouse and Bob has no siblings. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">Mom's will (after some small cash gifts) gives Bob the residue of her estate. If Bob predeceases her, the residue goes to Bob's wife ("Jane"). There are no further contingent beneficiaries listed in the will.
Bob and Jane have two children.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">The estate's main asset is a ½ interest in real property, which will go to Bob under the terms of the will. Bob (personally) owns the other half. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">Bob wants to gift this entire property to one of his children ("Child 1") but not the other ("Child 2"). Child 2 has minor children.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">As I understand it, if a beneficiary disclaims an interest in an estate, they cannot direct where it goes; it's treated as though the disclaimant predeceased the decedent. So if Bob disclaims, the estate's interest
in the house goes to Jane. If Jane also disclaims, then the house would go in equal shares to Child 1 and Child 2. If Child 2 also disclaims, then the minor children would inherit. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">It appears that the only way to get the Estate's interest in the house to Child 1 is for Bob to receive it himself, and then gift his entire interest to Child 1. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">Neither transfer (estate to Bob, Bob to Child 1) appears taxable under WAC 458-61A. Child 1 may lose the potential for a stepped up basis on Bob's half of the property at Bob's death, but this is mitigated somewhat
as the real property was purchased only 4-5 years ago. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">After writing this message, I feel like I've overthought this and I am looking for a problem that doesn't exist. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">Do any of my learned colleagues see a downfall to this approach? Thank you in advance.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-family:"Times New Roman",serif;color:#365F91">Peter D. Haroldson</span></b><span style="font-family:"Times New Roman",serif;color:#365F91"><o:p></o:p></span></p>
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<p class="elementtoproof" style="background:white"><b><span style="font-family:"Times New Roman",serif;color:#212121">PO BOX 530</span></b><o:p></o:p></p>
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