[WSBARP] "Controlling interest" REET rule : separate property land to Trust for H&W

[Jeanne Dawes]

It will be exempt under mere change of identity. You may want to consider putting interest into an LLC, and then transferring the LLC membership to the trust, if the client is not domiciled in WA and the estate is close to or exceeds the 2.193 mil WA estate tax exemption. Doing so turns the real prop. Interest to personal property, which follows state of domicile avoiding having to file the WA estate tax return.

Jeanne Dawes
Sent from my iPad

On Dec 29, 2022, at 3:59 PM, Josh Grant <jgrant at accima.com> wrote:


Client owns an undivided ½ interest in farm parcel. Other ½ interest is owned by an uncle.  Client wants to put her undivided interest in the parcel in a Trust along with other assets like the family home (all community property) in order to avoid probate. Beneficiaries of the existing trust are she and her husband. Client lives out of state and this is the only asset in Washington. I am hoping that because client owns 50% that the controlling interest isn’t being transferred and no REET issue.??
Josh
Joshua F. Grant
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P. O. Box 619
Wilbur, WA 99185
509 647 5578
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