[WSBARP] Excise Tax Question

[Umar Gebril]

Listmates,

Here’s a scenario I’d be interested in getting your opinions on:

A and B are both unmarried and currently own Property in joint tenancy WROS.

A wants to remove B from title, and then add C to title and own Property together as TIC. B is amenable to being bought out, and has agreed to sell her interest in the Property back to A for $350k. B does not know that C exists and B is not aware that A intends to add C to title after B is removed.

My initial thought is to first utilize a QCD to break the joint tenancy and remove B from title (thereby triggering excise tax liability on the part of B for the transfer in interest), and then subsequently completing a 2nd deed (QCD, WD…?) in order to add C to title.

However, by proceeding this way, I believe that in executing the 2nd deed (from A to C, as TIC), A will incur excise tax – which we want to avoid.

Aside from having B transfer her interest directly to C (and thereby finding out about C’s existence), can you think of another way or means that would allow us to complete this without having A incur excise tax?

Thoughts and comments appreciated.

Umar

Umar Gebril | Attorney | Partner
Cascade Law, PLLC
www.cascade-law.com<http://www.cascade-law.com>
1604 Hewitt Ave, Suite 515
Everett, WA 98201
425.300.5616

Confidentiality Notice: This e-mail message, from Cascade Law, PLLC, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. The recipient is responsible to maintain the confidentiality of this information and to use the information only for authorized purposes. If you are not the intended recipient (or authorized to receive information for the intended recipient), you are hereby notified that any review, use, disclosure, distribution, copying, printing, or action taken in reliance on the contents of this e-mail is strictly prohibited. If you have received this communication in error, please notify us immediately by reply e-mail and destroy all copies of the original message.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20220114/4f738ea9/attachment.html>