[WSBARP] REET Exemption for Parents to Son

[Kerry Richards]

Nick:
Be careful you do not involve yourself in perpetrating a fraud. “Muddying the waters” so as to avoid wife’s interest is perhaps just another phrase for the same thing-fraud. Did he use community funds for the down payment? Did he use community earnings for the mortgage payments? This type of transaction all too often rears its head during divorce.
Be careful you are not a participant.
Yours truly,
Kerry A. Richards

On Aug 31, 2021, at 4:03 PM, Nicholas Pleasants <nick at pleasantslaw.com> wrote:


Hi All,
Looking for a suggestion on how to structure a potential transaction. Parents want to transfer home to Son. The home equitably belongs to Son – he has paid the mortgage (and probably also the downpayment) since it was acquired from a third party years ago. At the time home was purchased by Parents, Son was going through a divorce, and to avoid muddying up the title with soon-to-be-ex-wife’s potential interest, Son asked Parents to purchase the home and take out mortgage for him (I know, a bit weird). I think the mortgage does not need to be refinanced because of Garn St. Germain. So my main concern is how to structure the transaction to  be exempt from excise tax. Can parents quitclaim to son? What WAC would apply? Thanks for any input or steerage in the right direction.
Best,
Nick

Nicholas Pleasants
Owner

<http://www.pleasantslaw.com/>
<image001.png>

Pleasants Law Firm, P.S.
2300 130th Ave NE, Suite A-101
Bellevue, WA 98005-1755
(425) 615-7070 tel/fax
nick at pleasantslaw.com<mailto:nick at pleasantslaw.com>
www.pleasantslaw.com<http://www.pleasantslaw.com>
The information contained in this e-mail message may be privileged and is confidential information intended only for the use of the recipient, or any employee or agent responsible to deliver it to the intended recipient. Any unauthorized use, distribution or copying of this information is strictly prohibited and may be unlawful.
If you have received this communication in error, please notify the sender immediately and destroy the original message and all attachments from your electronic files.
***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***

_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com
http://mailman.fsr.com/mailman/listinfo/wsbarp
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20210901/178da837/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 39035 bytes
Desc: image001.png
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20210901/178da837/image001.png>