[WSBARP] Deceased Co-signing Mom on Title

[Paul Neumiller]

Because the affidavit of lack of probate will cause Son to incur double excise taxes.  Based on price of residence, a probate would be cheaper.

 

 

 

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Thursday, August 27, 2015 1:16 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Deceased Co-signing Mom on Title

 

Why can’t you just get gift deeds from the heirs with a affid. to clear title?

 

 

From: Paul Neumiller <mailto:pneumiller at hotmail.com>  

Sent: Thursday, August 27, 2015 12:47 PM

To: wsbarp at lists.wsbarppt.com <mailto:wsbarp at lists.wsbarppt.com>  

Subject: [WSBARP] Deceased Co-signing Mom on Title

 

Listmates, I need input and guidance in a situation.  About 20 years ago, Son puts Mom on title solely so Mom can co-sign on refinance of residence.  Mom never contributed towards residence (i.e. no taxes, maintenance, or loan payments)  In fact, Mom never lived in WA.  Mom dies in CO and her estate is probated in CO.  Mom’s Will is silent as to disposition of the residence, probably because no one realized it. Son tries to sell residence and title company says problem with title because Mom is still on title.  For various reasons, title company and Son does not want an Affidavit of Lack of Probate.  OK……

1.       I could bring a “friendly” quiet title action and name all of Mom’s heirs.  Son tells me that all heirs (Son’s siblings) will either not answer or will sign a Stipulation because they all understand the situation and don’t want an interest in Son’s residence.  However, because siblings are out of state, they have 60 days to answer (or not answer as the case may be).  (Trying to avoid the heirs giving quitclaim deeds to Son because, I am told (by the title company) that will incur double excise taxes (once for quitclaim deeds and once to transfer to buyer of residence). OR

2.       I could open a probate in WA.  Mom never lived here and she died over two years ago.  Mom’s Will gives the residual of Mom’s estate “to those of my children who survive me per capita, or if none of my children shall survive me, then to my grandchildren…”.  I could have each sibling sign Disclaimers, in effect, leaving the sole asset to be disposed in WA (that is, the residence) to Son.  Son then transfers the residence to Son by PR deed (getting the inheritance exclusion to the excise tax) and then close up probate quickly.  Another factor that may be relevant is that even if the disclaimers are considered “gifts,” the equity of each disclaimer (i.e. FMV of residence minus loan balance) is less than $14K.  (As a side question because it came up, is a disclaimer a “gift?”)

 

OK, I am leaning towards the probate route.  Any thoughts or missed issues?  

  _____  

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