[WSBARP] complication in transferring RP to Trust

Fri May 19 12:55:24 PDT 2017

Pierce County did the same as Paul mentions for me recently.  They annotate the Excise Affidavit to show they reviewed it and handed everything back to me.

Best Regards,

Steven L. Stovall
Solution Law
253-235-4044
253-883-4055

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Friday, May 19, 2017 12:31 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] complication in transferring RP to Trust

Cy, don't know about your county but the Island County Treasurer only requires the extra documentation to establish that the WAC exemption is legitimate that the recording party is using.  So, to record my PR deeds or to record deeds spinning real property out of trusts, I provide a copy of the required documentation (copy of letters or the relevant pages of a trust (first page, the page showing the distribution, and the signature page)) to our Treasurer's office as proof  to use the exemption BUT the extra documents are not recorded (at least not in Island County).  I imagine that the Treasurers' office just keeps the extra documentation in their files in case they are audited by the State.  Once the Treasurer's office has blessed the transaction, the Recorder's Office lets me record only the PR deed or the deed transferring the property out of the trust.

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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Cyrus Field
Sent: Friday, May 19, 2017 11:48 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] complication in transferring RP to Trust

Not to hijack the string, but I'm curious what "portion" of the trust, pursuant to WAC 458-61A-202(6)(e), should be recorded showing the "authority  of the grantor" (e.g. trustee) to make transfers from a trust by inheritance/device? The pages showing name of trust and signature page? The current trustee and their general authority? The portion showing the actual trust beneficiary of the real property? I'm going to have to record such a deed soon and I've gotten mixed messages/blank stares from local Treasurers as well as the state DOR. Also, do you attach to the deed as an exhibit (as I'm doing now with Letters Testamentary for PR Deeds) or record the docs separately?

Having to record a 40 page trust certainly adds to the cost and detracts from the attraction of trusts for privacy reasons. Thanks in advance for any comments, Cy

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon)
phone: 360-472-1223 Mail: POB 367, Shaw Island, WA 98286 Office: 640 Mullis St. Friday Harbor, WA
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Bickel, Dwight
Sent: Thursday, May 18, 2017 9:21 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] complication in transferring RP to Trust

The WAC requiring an excise tax affidavit for all transfers by operation of law is relatively new [see WAC 458-61A-303 (Feb 28, 2014)]. Fortunately for professionals engaged in real property transactions, the local county recorders are not uniformly enforcing compliance. But some people acting as the DOR agent for excise tax are requiring an affidavit for any change from the prior records to the present grantor, regardless of the time. You can thank Rep. Terry Nealey and the Washington Land Title Ass'n that the revisions to RCW 82.45.197 [HB 2539 in 2016] require no fine or penalty for failure to file that excise tax affidavit.

So, it is possible in the posted question case for a very old divorce that the recorder will not allow recording of the next deed [B to B's Trust] without an excise tax affidavit showing the transfer by operation of the divorce from A&B to B. Still, nothing would be required from that ex-husband, and of course no tax is due since that was not a taxable sale.

From: Paul Neumiller

Dwight, as another poster has observed, the WACs seem to require a Real Estate Excise Tax Affidavit for this type of transaction and, I imagine, this is not followed in a great many divorces.  What has been your experience with the failure to file the REET?  Would a county really allow a divorcee to file a REET 30 years after the fact AND who is going to sign for the party giving up the property?
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