[WSBARP] Transfer of Controlling Interests

[Mark Anderson]

Dear All:

Father, Child 1, and Child 2 are members in 2 LLCs: Alpha LLC and Bravo LLC.  Alpha LLC and Bravo LLC each own one piece of real property and the properties are each worth $100,000.  The ownership percentages of each LLC are as follows:
20% - Father
40% - Child 1
40% - Child 2
Father dies, leaving all of his estate to Child 1 and Child 2 equally.  As a part of administering the estate, Child 1 and Child 2 want to change the ownership structure of each LLC such that Child 1 owns Alpha LLC and Child 2 owns Bravo LLC.

Questions:

Does this reallocation of ownership interests need to be reported as a transfer of controlling interest for the purpose of real estate excise tax?

If so, does the exemption under WAC 458-61A-202 make the entire transaction exempt?  I ask this because the other transfers are for less than a 50% controlling interest in the LLC.  Or does this have to be somehow reported as a partial exemption?

Thanks in advance for your thoughts on this scenario.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock Street, Suite 209, PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20260306/906ecd22/attachment.html>