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

[John J. Sullivan]

Kira:

If title is already held as TIC, you might consider the partition exemption. 

John J. Sullivan

Sent from my iPhone

> On Jan 6, 2021, at 11:00 AM, Kira Rubel <kira at theharborlawgroup.com> wrote:
> 
> 
> 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
> 
> 
> 
> 
> 
> The Harbor Law Group 
> (formerly, Law Office of Kira M. Rubel)
> 3615 Harborview Drive NW, Suite C (on the dock)
> Gig Harbor, WA 98332-2129 
> CA Bar No. 253970 / WA Bar No. 51691
> Tel.  (253) 358-2215 | (800) 836-6531
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