<div dir="ltr"><div><div class="gmail_default" style="font-size:large">Shannon,</div><div class="gmail_default" style="font-size:large"><br></div><div class="gmail_default" style="font-size:large">I would say this is a gift of a life estate with the life tenants assuming all traditional life tenant duties under WA law, so there is no sale and thus no excise tax. The parents paying these costs creates no tax because again, they are just paying for items that, under WA law, unless contracted otherwise, they are required to cover. I'm curious what others have to say.</div><div class="gmail_default" style="font-size:large"><span style="background-color:transparent"><br></span></div><div class="gmail_default" style="font-size:large"><span style="background-color:transparent">That being said, and I know you didn't ask this, your clients could be at risk of losing the capital gains exemption for a future sale of this property if this is no longer their primary residence after a certain amount of time passes. </span></div><div class="gmail_default" style="font-size:large"><span style="background-color:transparent"><br></span></div><div class="gmail_default" style="font-size:large"><span style="background-color:transparent">Best of luck,</span></div><br clear="all"></div><div><div dir="ltr" class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div>PLEASE NOTE THAT MY RESPONSE TIME MAY BE DELAYED DUE TO PENDING MATTERS. I WILL ALSO BE TRAVELING FROM AUGUST 26, 2026, UNTIL AUGUST 30, 2026, WITH LIMITED ACCESS TO EMAIL. I WILL ALSO BE IN TRAIL THE WEEK OF SSEPTEMBER 7, 2026.</div><div><b><br></b></div><div><span style="color:rgb(56,118,29);font-family:georgia,serif;font-size:large">Diane Kiepe, J.D., LL.M. Taxation</span></div><div><font color="#38761d" face="georgia, serif" size="4">Kiepe Estate and Probate, PLLC<br></font><div><font size="4" face="georgia, serif" color="#38761d"><a href="mailto:diane@kiepelaw.com" target="_blank">diane@kiepelaw.com</a></font></div><div><font size="4" face="georgia, serif" color="#38761d">200 N. Mullan Rd., Suite 203</font></div><div><font size="4" face="georgia, serif" color="#38761d">Spokane Valley, WA 99206</font></div></div><div><span style="color:rgb(56,118,29);font-family:georgia,serif;font-size:large">509-808-2087</span></div><div><div><span style="color:rgb(105,105,105);font-family:Verdana,sans-serif;font-size:10px">Confidentiality</span><span style="color:rgb(105,105,105);font-family:Verdana,sans-serif;font-size:10px"> Notice: This page and any accompanying documents contain information that is </span><span style="color:rgb(105,105,105);font-family:Verdana,sans-serif;font-size:10px">confidential</span><span style="color:rgb(105,105,105);font-family:Verdana,sans-serif;font-size:10px">, privileged, or exempt from disclosure under applicable law and is intended for the exclusive use of the addressee. This information is private and protected by law. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or use of the contents of this information in any manner is strictly prohibited.</span></div></div></div></div></div><br></div><br><div class="gmail_quote gmail_quote_container"><div dir="ltr" class="gmail_attr">On Wed, Aug 12, 2026 at 8:24 AM Shannon Jones <<a href="mailto:shannonj@campbellbarnettlaw.com">shannonj@campbellbarnettlaw.com</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div class="msg-1496885253187986384">
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<p class="MsoNormal"><span style="font-size:11pt">Listmates, I am trying to determine the excise and income tax implications of the following: My clients, married spouses, want to transfer their property into a revocable living trust and make their parents
the current beneficiaries as to a life estate in the property subject to the requirement that the parents will pay all expenses related to their occupancy (taxes, insurance, utilities). Is transfer to the trust subject to WA excise tax due to the life estate
grant in the trust? Will parents’ payment of these expenses result in any form of taxable transaction? Shannon<u></u><u></u></span></p>
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<p class="MsoNormal"><b><span style="font-size:13pt;font-family:"Times New Roman",serif;color:rgb(50,62,79)">Shannon R. Jones | Attorney
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