[WSBARP] Conveyance from one spouse, to joint trust

[Mark Anderson]

I’ve looked at this before and a big sticking point is how to treat the exemptions.  Spouse to both to create community property is exempt from excise tax under WAC 458-61A-203(1).  Both to trust is exempt from excise tax under WAC 458-61A-211 (2)(g) if it is a revocable trust.  But if you try to go directly from one spouse to the trust, where both spouses are beneficiaries, there will have been a change in the beneficial ownership, which would disqualify the transaction from being exempt from excise tax.

Trying to do it all in one instrument would be a strained exercise not only for you, but for the recorder and treasurer as well.  For example, the grantors and grantees for each of the “parts” will be different.  This would be messy and create preventable title hardships in the future.

I recommend you do this in a two step process.  The added recording fee will probably be much less than the excise tax due on the transaction if you try to do it directly.

Mark B. Anderson
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Jeanne Dawes
Sent: Monday, August 30, 2021 9:32 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Conveyance from one spouse, to joint trust

I wonder, can you have a double deed?  One deed with two sets of conveyance language?  My guess is the auditor may see this as 2 separate transactions, but maybe not.  The grantor would be H & W and the Grantee would be trust.

Jeanne

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Craig Blackmon
Sent: Monday, August 30, 2021 9:08 AM
To: WSBA Real Property List Serve <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Conveyance from one spouse, to joint trust

'Mates, these things come in bunches, and I have a couple of these on my desk right now.

Question: Is it advisable to structure this conveyance in two parts (from one spouse to both, then from both to the trust where they are co-beneficiaries), to clearly comply with WAC 458-61A (and the DOR's interpretation of it)? Or can it be a single conveyance from one spouse, to the trust with two beneficiaries? What with the rising recording costs and all....

Thanks for your time and insight!

Craig
Craig Blackmon, Attorney at Law<https://www.mywsba.org/PersonifyEbusiness/LegalDirectory/LegalProfile.aspx?Usr_ID=000000029240>
92 Lenora St. #8, Seattle WA  98121
Office/Cell: (206) 369-5949
On the blog: Co-Ownership of Real Property by Single People<https://www.fsbolawyers.org/blog/tenants-in-common-agreement>
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