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

Sun Feb 16 14:31:05 PST 2020

No tax.  In this circumstance, I don’t think the subsequent refi is a problem, although I understand Eric’s reasoning. The rule is pretty straightforward and they’re not do not appear to be any exceptions elsewhere in route 203.

If you really want to be certain, you can request a ruling free of charge from the Department of Revenue online. In my experience it takes 3 to 6 weeks to get a ruling back.

On Feb 16, 2020, at 3:36 PM, Jim Doran <jim at doranlegal.com> wrote:

No tax?

James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>

On Sun, Feb 16, 2020 at 1:30 PM Lawrence F. Brown, Jr. <lbrown at brownsterling.com<mailto:lbrown at brownsterling.com>> wrote:
Rule 203(1) Transfers “that establish or separate community property,” will work just fine.  They are married and want to establish separate property.  We use the exemption frequently for estate planning purposes.

LB

On Feb 12, 2020, at 1:01 PM, Jim Doran <jim at doranlegal.com<mailto:jim at doranlegal.com>> wrote:

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<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>
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