[WSBARP] Transfer on Death Deed Issues

Wed Aug 26 08:37:21 PDT 2015

Thank you Marcus, that was my analysis as well. The folks at the assessor's
office however, are unsure on addressing the issue. 

Thank you. 

John H. Loeffler

8414 N. Wall, Suite A

Spokane, Wa 99208-6171

Phone: 509.467.6767

 <mailto:JohnL at Ollps.com> JohnL at Ollps.com

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Marcus Fry
Sent: Tuesday, August 25, 2015 4:33 PM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Transfer on Death Deed Issues

John:

The TODD is not a gift because the transfer is not effective until death
because grantor can revoke the deed.  Because it is revocable, I think that
would addressed the special use classification issue because the grantor
hasn't transferred anything yet and is still the owner for all intents and
purposes (including Medicaid qualification).  Therefore, the grantee
shouldn't be required to sign because they actually haven't received
anything.  Also because it is revocable, it will not start the 5-year look
back period for Medicaid eligibility purposes.  

Marcus J. Fry

Lyon, Weigand & Gustafson, P.S. 
Adoption Attorney*

P.O. Box 1689 
Yakima, Washington  98907 
Telephone:  (509) 248-7220 
Facsimile:  (509) 575-1883 

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From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of John L
Sent: Tuesday, August 25, 2015 2:52 PM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Transfer on Death Deed Issues

Listmates:

I have recently been asked to prepare a Transfer on Death Deed (TODD) for a
client.  I have read the great article by Al Falk in the Summer 2014 RPP&T
newsletter which answers a number of my questions but not the following:

The property to be transferred is classified as a special use under 84.34.
The Spokane County Assessor in charge of special use in Spokane County was
uncertain as to continuing the classification.  It was suggested that the
grantee must sign the excise tax affidavit (REET) section 6 before recording
the TODD.  This requirement seems odd as the transfer by TODD may be done
without the knowledge of the transferee at the time the TODD is recorded.
By requiring the transferee to sign the REET suggests that a transfer occurs
at the time the TOOD is recorded or signed. This should not be the case as
the TODD form suggested by Mr. Falk specifically provides that:

The recording of this Revocable Transfer on Death Deed is not a "sale" as
defined in RCW 82.45.010(1) and is therefore not subject to real estate
excise tax. The transfer that will occur under this Revocable Transfer on
Death Deed at the time of the Grantor's death is exempt from the Washington
Real Estate Excise Tax by reason of RCW 82.45.010(3)(b) and WAC
458-61A-202(7). 

I also note that WAC 458-30-275 provides that "The treasurer should notify
the assessor when classified land has been transferred by inheritance or by
a transfer on death deed without a notice of continuance."

I also have concerns about whether the TODD creates a gift for the purposes
of Medicaid at the time recorded. I would think that it would not but this
could create a serious problem if the grantor would be ineligible for
Medicaid as a result of the TODD filing. 

  Does anyone have experience with these issues.

John H. Loeffler

8414 N. Wall, Suite A

Spokane, Wa 99208-6171

Phone: 509.467.6767

 <mailto:JohnL at Ollps.com> JohnL at Ollps.com

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