[WSBARP] [WSBAPT] In active LLC - transfer of real property to living trust

Fri Oct 30 09:50:38 PDT 2026

Thank you so much for this.  This week alone, three people talked to me
about setting up trusts "to protect their assets".  I have to explain to
them that what they hear at some free dinner or on some show isn't
applicable in WA.  I can't speak for other jurisdictions known for their
approach to trusts but I am amazed at how far people are willing to go.  I
then discuss the homestead exemption (which is typically the address they
are asking about.

Thank you.
Diane Kiepe, J.D., LL.M. Taxation
Kiepe Estate and Probate, PLLC
diane at kiepelaw.com
200 N. Mullan Rd., Suite 203
Spokane Valley, WA  99206
509-808-2087
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On Fri, Oct 30, 2026 at 9:23 AM Mark McClure, J.D. - McClure Law Group <
mark at mcclurelawgroup.com> wrote:

> *Bankruptcy perspective:*  Revocable Living Trusts are great; but the
> homestead in this state only applies to property owned by the debtor that
> the debtor lives in, intends to live in, or has dependents living in.  And,
> assets in a revocable trust are accessible by trustor’s creditors.
>
> While a good argument can be made that the beneficiary of a trust living
> in a property that is in the trust, should be able to claim that homestead,
> it is not explicit in the code nor is there any good case law that I am
> aware of in this state.
>
> Reminder, in King County, the homestead exemption this year is $940,000.
>
> I recommend to my clients that they move the homestead out of the trust
> before filing.  There is another gotchya though. The 1,215-day rule, which
> is a federal statutory cap under 11 U.S.C. § 522(p) of the U.S. Bankruptcy
> Code.  This is how long if a client wanted to be uber safe would wait after
> that transfer to file the bankruptcy.
>
> Again, there are good equitable beneficial title arguments to be made, but
> what one bankruptcy judge may buy, another may not.
>
> *Mark C. McClure* *| *
> *Managing Attorney *Law Office of Mark McClure, PS
>
> *"Why Retire With Debt?"*1103 West Meeker Street, #101
> <https://www.google.com/maps/search/1103+West+Meeker+Street,+%23101+Kent,+WA+98032+Office:%C2%A0+253?entry=gmail&source=g>
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>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Eric Nelsen
> *Sent:* Friday, October 30, 2026 9:12 AM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>; 'WSBA
> Real Property Listserv' <wsbarp at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] In active LLC - transfer of real property to
> living trust
>
>
>
> The transfer should be done by the persons authorized to dissolve and wind
> up the LLC. If it’s member-managed, then a deed from all members would
> probably do it—but need to read the LLC’s Operating Agreement and the
> statutes. See RCW 25.15.297.
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
> <https://www.google.com/maps/search/1417+31st+Ave+South+Seattle+WA+98144-3909?entry=gmail&source=g>
>
> Seattle WA 98144-3909
> <https://www.google.com/maps/search/1417+31st+Ave+South+Seattle+WA+98144-3909?entry=gmail&source=g>
>
> 206-625-0092 <(206)%20625-0092>
>
> eric at sayrelawoffices.com
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *
> Jeff at bellanddavispllc.com
> *Sent:* Friday, October 30, 2026 9:04 AM
> *To:* 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>; 'WSBA
> Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] In active LLC - transfer of real property to living
> trust
>
>
>
> Listmates:
>
>
>
> For estate planning purposes, PC and siblings transferred rental real
> property into an LLC.  After covid and the new landlord-tenant act, the
> property was taken out of the rental pool and one sibling bought out.  The
> other siblings let the LLC license lapse.  Now the remaining members want
> to transfer the property to a Trust.  Can the remaining members sign a deed
> on behalf of the LLC and transfer insurable title to a newly formed trust?
>
>
>
> Jeff Davis
>
>
>
> *W. Jeff Davis*
>
> *BELL & DAVIS PLLC*
>
> *Attorneys at Law*
> P.O. Box 510
>
> 720 E. Washington Street, Suite 105
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> Sequim WA 98382
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> Phone: (360) 683.1129 <(360)%20683-1129>
> Fax: (360) 683.1258 <(360)%20683-1258>
> email: jeff at bellanddavispllc.com
> www.bellanddavispllc.com
>
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