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<p class="MsoNormal"><a name="_GoBack"></a><span style="color:#1F497D">John:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">The TODD is not a gift because the transfer is not effective until death because grantor can revoke the deed. Because it is revocable, I think that would addressed the special use classification issue because
the grantor hasn’t transferred anything yet and is still the owner for all intents and purposes (including Medicaid qualification). Therefore, the grantee shouldn’t be required to sign because they actually haven’t received anything. Also because it is revocable,
it will not start the 5-year look back period for Medicaid eligibility purposes.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Lyon, Weigand & Gustafson, P.S.</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D">
<br>
</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Adoption Attorney*<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">P.O. Box 1689</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D">
<br>
</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Yakima, Washington 98907</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D">
<br>
</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Telephone: (509) 248-7220</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D">
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</span><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Facsimile: (509) 575-1883</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D">
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<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D">NOTICES:<o:p></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D"> *Adoption Attorney reflects election as a Fellow of the American Academy of Adoption Attorneys, an invitation based organization of
300+ attorneys nationwide, under its criteria of experience, ethics and peer recommendation. Washington's Supreme Court has not yet developed or recognized a credentialing process for specialties, and certification/fellowship is not required to practice law
in this state.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>John L<br>
<b>Sent:</b> Tuesday, August 25, 2015 2:52 PM<br>
<b>To:</b> 'WSBA Real Property Listserv'<br>
<b>Subject:</b> [WSBARP] Transfer on Death Deed Issues<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">Listmates:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">I have recently been asked to prepare a Transfer on Death Deed (TODD) for a client. I have read the great article by Al Falk in the Summer 2014 RPP&T newsletter which answers a number of my questions but not
the following:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">The property to be transferred is classified as a special use under 84.34. The Spokane County Assessor in charge of special use in Spokane County was uncertain as to continuing the classification. It was suggested
that the grantee must sign the excise tax affidavit (REET) section 6 before recording the TODD. This requirement seems odd as the transfer by TODD may be done without the knowledge of the transferee at the time the TODD is recorded. By requiring the transferee
to sign the REET suggests that a transfer occurs at the time the TOOD is recorded or signed. This should not be the case as the TODD form suggested by Mr. Falk specifically provides that:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="color:black">The recording of this Revocable Transfer on Death Deed is not a “sale” as defined in RCW 82.45.010(1) and is therefore not subject to real estate excise tax.</span>
<span style="font-family:"Open Sans";color:black;background:white">The transfer that will occur under this Revocable Transfer on Death Deed at the time of the Grantor’s death is exempt from the Washington Real Estate Excise Tax by reason of RCW 82.45.010(3)(b)
and WAC 458-61A-202(7). </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">I also note that WAC 458-30-275 provides that “</span><span style="font-family:"Open Sans";color:black;background:white">The treasurer should notify the assessor when classified land has been transferred by inheritance
or by a transfer on death deed without a notice of continuance.”<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">I also have concerns about whether the TODD creates a gift for the purposes of Medicaid at the time recorded. I would think that it would not but this could create a serious problem if the grantor would be ineligible
for Medicaid as a result of the TODD filing. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black"> Does anyone have experience with these issues.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Harlow Solid Italic";color:#0070C0">John H. Loeffler</span></b><span style="font-size:14.0pt;font-family:"Harlow Solid Italic";color:#0070C0"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:black">8414 N. Wall, Suite A<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:black">Spokane, Wa 99208-6171<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:black">Phone: 509.467.6767<o:p></o:p></span></b></p>
<p class="MsoNormal"><a href="mailto:JohnL@Ollps.com"><b>JohnL@Ollps.com</b></a><b><span style="color:black"><o:p></o:p></span></b></p>
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