[WSBARP] Excise Tax Exemption for married and separated persons transferring property from one to the other

[Jim Doran]

Question:  If Husband is being relieved of his responsibility on a debt by
virtue of the refinance into Wife's sole name, isn't the County/State going
to want to tax the portion that he is relieved of?

Jim Doran
James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com
www.doranlegal.com


On Wed, Feb 12, 2020 at 11:44 AM Eric Nelsen <Eric at sayrelawoffices.com>
wrote:

> Leaving aside all the other issues concerning separation of assets in a
> sort-of separated but not divorced situation—
>
>
>
> Yes, since they are still legally married, WAC 458-61A-203(1)
> <https://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-203> applies. No
> separation contract is required, as married couples are free to
> recharacterize property as community or separate without incurring excise
> tax under that subsection (1).
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
>
> Seattle WA 98144-3909
>
> 206-625-0092
>
> eric at sayrelawoffices.com
>
>
>
> *From:* wsbarp-bounces at lists.wsbarppt.com <
> wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Jim Doran
> *Sent:* Wednesday, February 12, 2020 11:00 AM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* [WSBARP] Excise Tax Exemption for married and separated
> persons transferring property from one to the other
>
>
>
> Not an uncommon situation:  H & W have  been separated for 8 years.  Both
> have their names on the title.  Wife has been living in the home and wants
> to refinance the loan.  To do so, she has to get Husband off of the title.
> Husband is willing to sign a QCD.  They do not have a legal separation
> agreement or order/decree.
>
>
>
> Does the below WAC, 456-61A-203 work for this?  Do they need a separation
> agreement?  Do they need a Decree of Legal Separation?  Is there another
> WAC that works for this exemption?
>
>
>
>   WAC 458-61A-203 Community property, dissolution of marriage or domestic
> partnership, legal separation, decree of invalidity. (1) Community
> property. Transfers from one spouse or domestic partner to the other that
> establish or separate community property are not subject to the real estate
> excise tax. (2) Court decree. The real estate excise tax does not apply to
> any transfer, conveyance, or assignment of property or interest in property
> from one spouse or domestic partner to the other in fulfillment of a
> settlement agreement incident to a decree of dissolution, declaration of
> invalidity, or legal separation. (3) Transfers to third parties.
>
>
>
> James
>
>
> James R. Doran
>
> Attorney at Law
>
> 100 E. Pine Street -  Suite 205
>
> Bellingham, WA 98225
> (360)393-9506
>
> jim at doranlegal.com
>
> www.doranlegal.com
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