[WSBARP] Transfer from Revocable Trust to Unequal Tenants in Common

[John J. Sullivan, Esq.]

Mark:

 

Is there actual consideration passing? What is the intent of the unequal TIC interests? Is the property currently characterized as CP in the RLT, or SP?

 

They are spouses. I don’t see why a combination of Rule 211 and Rule 203 doesn’t provide the exemption you need. The only thing I can think of is you may need to take a two step approach, first distributing out in equal shares and then creating SP in unequal amounts, as a gift. But I’d seriously consider doing just one deed. You could first do an amendment to the RLT Agreement adjusting their interests in that property, characterizing it as a gift. What’s really going on here?

 

John J. Sullivan

 

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Mark Anderson
Sent: Wednesday, June 29, 2022 4:21 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Transfer from Revocable Trust to Unequal Tenants in Common

 

Husband and wife have a family trust that owns real property.  They desire to transfer title to the property into their individual names as tenants-in-common, with one spouse having a 75% interest and the other spouse having a 25% interest.  Unfortunately, this appears to be a change in the beneficial interest in the property which, without an appropriate exemption, would likely be subject to the real estate excise tax.

 

How can this be documented to avoid the imposition of real estate excise tax on the transaction?

 

Thanks in advance.

 

Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
 <mailto:marka at mbaesq.com> marka at mbaesq.com
 <http://www.mbaesq.com/> www.mbaesq.com

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