<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;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:12.0pt;
font-family:"Calibri",sans-serif;
mso-ligatures:standardcontextual;}
span.EmailStyle17
{mso-style-type:personal-compose;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style>
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72" style="word-wrap:break-word">
<div class="WordSection1">
<p class="MsoNormal"><span style="font-size:11.0pt">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<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<table class="MsoTableGrid" border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;border:none">
<tbody>
<tr>
<td width="127" valign="top" style="width:95.4pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:11.0pt"><img width="115" height="83" style="width:1.2in;height:.8666in" id="Picture_x0020_1" src="cid:image001.png@01DD2A33.E7A03D80"><span style="mso-ligatures:none"><o:p></o:p></span></span></p>
</td>
<td width="511" colspan="2" valign="top" style="width:383.4pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Times New Roman",serif;color:#323E4F;mso-ligatures:none">Shannon R. Jones | Attorney
</span></b><span style="font-size:11.0pt;font-family:"Times New Roman",serif;color:#323E4F;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Times New Roman",serif;color:#323E4F;mso-ligatures:none">Campbell Barnett PLLC</span><span style="font-size:11.0pt;font-family:"Times New Roman",serif;color:#323E4F;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:black;mso-ligatures:none">Direct: 253.848.3515<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:black;mso-ligatures:none">Office: 253.848.3513| Fax: 253.845.4941</span><span style="font-size:11.0pt;font-family:"Times New Roman",serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:black;mso-ligatures:none">317 South Meridian</span><span style="font-size:11.0pt;font-family:"Times New Roman",serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:black;mso-ligatures:none">Puyallup, WA 98371</span><span style="font-size:11.0pt;font-family:"Times New Roman",serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Times New Roman",serif;mso-ligatures:none"><a href="mailto:shannonj@campbellbarnettlaw.com"><span style="font-size:10.0pt;color:#2F5496">shannonj@campbellbarnettlaw.com</span></a></span><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:#2F5496;mso-ligatures:none">
</span><span style="font-size:11.0pt;font-family:"Times New Roman",serif;color:#2F5496;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><u><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:#4472C4;mso-ligatures:none"><a href="https://campbellbarnettlaw.com/"><span style="color:#4472C4">campbellbarnettlaw.com</span></a></span></u><span style="font-size:11.0pt;font-family:"Times New Roman",serif;mso-ligatures:none"><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="595" colspan="2" valign="top" style="width:6.2in;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Times New Roman",serif;color:black;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Times New Roman",serif;color:black;mso-ligatures:none">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 delete and notify the sender immediately.</span><span style="font-size:11.0pt;mso-ligatures:none"><o:p></o:p></span></p>
</td>
<td width="43" valign="top" style="width:.45in;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Times New Roman",serif;color:#222A35;mso-ligatures:none"><o:p> </o:p></span></b></p>
</td>
</tr>
<tr height="0">
<td width="130" style="border:none"></td>
<td width="386" style="border:none"></td>
<td width="38" style="border:none"></td>
</tr>
</tbody>
</table>
<p class="MsoNormal"><span style="font-size:11.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
</body>
</html>