[WSBARP] Excise tax question with part inheritance part consideration

[Kristina Driessen]

A CMA was done, no appraisal.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kate Love
Sent: Friday, November 20, 2020 9:18 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Excise tax question with part inheritance part consideration

what is the basis for the $400K value?

(I am doing a set of transfers based on very similar facts in King County right now 😉)




Kate F. Love

WSBA No. 51314





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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> on behalf of John McCrady <j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>>
Sent: Friday, November 20, 2020 9:03 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Excise tax question with part inheritance part consideration


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

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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 Kristina Driessen
Sent: Friday, November 20, 2020 7:20 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto: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>



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