[WSBARP] GIFT OF REAL PROPERTY TO FAMILY MEMBER- QUESTION ON POSSIBLE EXEMPTIONS

[Heather de Vrieze]

If this is a distribution from a trust to the beneficiary of the trust because the original grantor has died, this is probably an inheritance exemption 458-61A-202, but also review 458-61A-210 that addresses distributions from irrevocable trusts.

Of course, going forward the new owner of the property will be responsible for property taxes, and will need to separately apply for exemptions/deferrals if they are eligible.

Also, capital gains upon sale will depend on the basis of the property they are receiving, so it will be important to know the trust's basis in the property, including if/when this may have received a step-up in basis and whether there was any depreciation taken or capital improvements since that point.

Heather

Heather S. de Vrieze
(she/her)
Attorney-at-Law
[cid:image001.jpg at 01DBB9AD.1F302010]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>

Click here to connect with de Vrieze | Carney on Facebook:   [FB Logo] <https://www.facebook.com/DeVriezeCarney>

CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally privileged and/or confidential information.  If you have received this e-mail in error, please notify the sender immediately and delete all copies of this e-mail message and any attachment.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Fern Herbert
Sent: Tuesday, April 29, 2025 5:51 PM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] GIFT OF REAL PROPERTY TO FAMILY MEMBER- QUESTION ON POSSIBLE EXEMPTIONS
Importance: High

Hello List mates,

I am usually on the Trust and Probate Section of this list serv. So, I am not well versed on this issue.

I have a client who has been gifted real property in which she currently lives by the current Trustee of the now irrevocable trust. Can anyone speak to the associated taxes and if there is any way to minimize any of them?

The value of the assessed value of the real property is: $593K.   It is located in King County.

Are we just looking at the real estate excise tax for property transfers?

Your input is Much appreciated.


Fern Herbert
Managing Attorney
Zenith Law Group, PLLC

Business Mailing Address
4320 196th St. SW B-712
Lynnwood, WA  98036
Phone/Fax: (425) 822-6311

Office locations in: Arlington, Bellevue, Bothell, Everett, Kirkland, Lynnwood, Mt. Vernon, Renton, downtown Seattle


*The information is intended only for the use of the individual or entity to whom it is addressed. If you are not the intended recipient, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that unauthorized viewing, dissemination, distribution or copying of this transmission is in violation of the Electronic Communications Privacy Act of 1986 (18 U.S.*C. § 2700 *et seq.) as well as Domestic and International Laws and Treaties. If you have received the communication in error, please immediately notify  Zenith Law Group by telephone call to (206) 686-7373.*

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20250430/dbab0425/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 17884 bytes
Desc: image001.jpg
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20250430/dbab0425/image001.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 18009 bytes
Desc: image002.png
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20250430/dbab0425/image002.png>