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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:windowtext">I am not aware of any way to structure this so that the house is simultaneously included in the taxable estate of the parent AND keeps it out of the parent’s
estate for Medicaid purposes. Perhaps someone smarter than me has solved this puzzle.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:windowtext">Weighing the lien vs the basis step-up is something I advise clients on frequently, and a reason we often wait to transfer the home.<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in"><span style="font-size:12.0pt;font-family:"Lucida Calligraphy";color:#1F497D;mso-ligatures:standardcontextual">Heather S. de Vrieze</span><b><span style="font-size:16.0pt;font-family:"Aptos",sans-serif;color:#1F497D;mso-ligatures:standardcontextual"><br>
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<p class="MsoNormal" style="margin-bottom:0in"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext"> wsbarp-bounces@lists.wsbarppt.com
<wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Mark Anderson<br>
<b>Sent:</b> Tuesday, August 11, 2026 2:53 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com>; WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Real Property Transfer Out of Trust<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#002060">Dear Mates:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">PC wants to transfer real property out of her revocable trust to one of the contingent beneficiaries so that PC can qualify for Medicaid. [The transfer would be exempt from the look back period under WAC 182-513-1363(4)(d)(iv)].<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">If the transfer is characterized as a gift, I understand there would be no step up in basis for the purpose of capital gains tax. PC has owned the property since the beginning of time, so the capital gains impact
would be great.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Are there any other options for structuring or characterizing this transaction that would result in a step up in basis for the beneficiary?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Thanks in advance.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="color:#002060">Mark B. Anderson<br>
</span></b><span style="color:#002060">ANDERSON LAW FIRM PLLC<br>
821 Dock Street, Suite 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>
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