[WSBARP] Excise tax question with part inheritance part consideration

[John McCrady]

I infer from your description that in the minds of the three heirs there is a perhaps unconscious assumption that the $400,000 value can be divided as follows:
$210,000 cash (which is consideration)
$56,666.67 services rendered (which is also consideration)
$133,333.33 inheritance (which is not consideration)

So excise tax would be owing on consideration paid of  $266,666.67


John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>
WARNING-FRAUDULENT FUNDING INSTRUCTIONS
Email hacking and fraud are on the rise to fraudulently misdirect funds.  Please call your escrow officer immediately using contact information found from an independent source, such as the sales contract or internet, to verify any funding instructions received.  We are not responsible for any wire sent by you to an incorrect bank account.

***Due to the Covid 19 outbreak and with concern for the health and safety of our employees and community; our University Place lobby will remain locked during normal business hours. If you need to make an appointment or have any questions or concerns, please contact us at our main office at 253-474-4747. We appreciate your patience during these uncertain times and look forward to consistently exceeding your expectations.***

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Kristina Driessen
Sent: Friday, November 20, 2020 7:20 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Excise tax question with part inheritance part consideration

Good Morning:

Maybe I way over thinking this but I am spinning my wheels on this issue.

Facts: An estate has been opened with the courts, [intestate]. The only real asset is a home [plus a very small bank account]  There are 3 heirs. One of the heirs wishes to purchase the home as she has been residing in the home caring for the decedent. All agree to give the heir that cared for the decedent a larger percentage of the home. There are not enough assets to do a like kind sort of transfer.  Heir is obtaining a loan to buy the home. The sale price to the one heir is 210,000.00


Just throwing out numbers.... If the home is valued at $400,000.00 each heir technically has an interest valued at $133,333.33.
Would the excise tax be on the 210K OR difference in the sale price and her actual inheritance =$76,666.67 OR the difference in the value and her actual inheritance $267,666.67.

Thanks in advance!



Kristina A. Driessen
"A" Street Legal Services, Inc. P.S
Attorneys at Law
16 A Street SE
Auburn, WA. 98002
(253) 939-0811
(253) 939-0471 fax
astreetlegalservices.com
kristina at rdattys.comcastbiz.net<mailto:kristina at rdattys.comcastbiz.net>

CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney/client privilege, work product doctrine or other confidentiality protection.  If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution or copying of this communication is prohibited.  If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at 253.939.0811 that you have received the message in error, and then delete it.  Thank you.





-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20201120/c16f2532/attachment.html>