[WSBARP] Decree of Distribution without deed in probate; interaction with REETA requirements

[John McCrady]

>From my point of view, title passes to the heirs and devisees at death, subject to the probate administration.
I view the decree of distribution (or declaration of completion) as the confirmation of the vesting that has already occurred.
So yes, we would insure title in the heir/devisee upon filing of the decree of distribution without recording the decree or filing an excise tax affidavit.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Tuesday, October 29, 2019 4:29 PM
To: REALPROP at yahoogroups.com; WSBA Real Property Listserv (wsbarp at lists.wsbarppt.com) <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Decree of Distribution without deed in probate; interaction with REETA requirements

Title and recording experts:

It appears to me that in a probate, the Court can issue a Decree of Distribution that by itself conveys described real property to the designated beneficiaries. The Decree is a judgment and would be effective on entry, same as a judgment quieting title. So no deed executed by the PR would be required.

If I wanted to record the Decree (not required, I know, but if I did), WAC 458-61A-303(2)(b)<https://r.xdref.com/?id=x9TNd8K3031557&from=wsbarp-bounces@lists.wsbarppt.com&to=j.mccrady@pstitle.com&url=https://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-303> says transfer "resulting from a court order" requires an affidavit.

But the Decree is a judgment, and is itself the transfer. It's not an Order requiring the PR to execute a deed, which is what the WAC appears to refer to. That interpretation is consistent with RCW 82.45.197(1)(e)<https://app.leg.wa.gov/RCW/default.aspx?cite=82.45&full=true#82.45.197>, which states:

                (1) In order to receive an exemption under RCW 82.45.010(3)(a) from the tax in this chapter on real property transferred as a result of a devise by will or inheritance, the following documentation must be provided to the county treasurer:
                                ....
                                (e) If the property is being transferred pursuant to a court order, a certified copy of the court order requiring the transfer, and confirming that the grantor is required to do so under the terms of the order;

So I don't think a REETA is required to record a Decree of Distribution.

Am I wrong? Will a title company object if I do it this way? Will the County Treasurer or Auditor?

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040



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