[WSBARP] Excise tax on inherited properties out of FLP and RLT

[Eric Lanza]

Maybe WAC 458-61A-204(2)?


Eric J. Lanza, J.D.

[cid:image001.png at 01D6E41D.AA0C5DD0]


From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kira Rubel
Sent: Wednesday, January 6, 2021 11:00 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Excise tax on inherited properties out of FLP and RLT

Hello again, list!  I have three clients who inherited 9 properties from their now-deceased parents, out of the parents' Family Limited Partnership and the parents' living trust.   Now, we're in the process of transferring title to each child's LLC or living trust.

The parents did not leave specific properties to specific kids, rather all properties were left to all three children. The three adult children decided among themselves how to divide up the properties (and cash). Each child is taking 3 properties in their entirety.

My office spoke with the DOR-Excise Tax department and they said we might have an excise tax problem since each property was left to all three children, rather than one property per one child.  Has anyone run into this before? There has to be a work-around, since this is inherited property!

Any and all guidance is appreciated!

Thank you!

Kira M. Rubel, Esq.

*Licensed in CA and WA
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The Harbor Law Group
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