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Transfer from H&W to kids would be exempt as a gift then transfer to LLC from everyone is exempt as mere change in form.of ownership as long as the the percentage ownership in LLC matches percentage ownership in property.
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> on behalf of Julie Martiniello <julie@dimensionlaw.com><br>
<b>Sent:</b> Thursday, December 12, 2019 6:19:42 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] LLC Transfer</font>
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<div dir="ltr">Why are they transferring? If they are gifting you can avoid excise tax using the gift exemption- you will need a supplemental statement as well if I remember correctly. If there is debt on the property that will need to be allocated for. You
would cite the exemption on the affidavit under section 6: <a href="https://dor.wa.gov/sites/default/files/legacy/Docs/forms/RealEstExcsTx/84-0001b.pdf" target="_blank">
https://dor.wa.gov/sites/default/files/legacy/Docs/forms/RealEstExcsTx/84-0001b.pdf</a>
<div>There is also the family company exemption you could use. However, that is a bit tricky because if the children ever sell, they have to pay the excise tax on the sale and then also pay the excise tax they avoided by the transfer. See <a href="https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-211" target="_blank">https://app.leg.wa.gov/WAC/default.aspx?cite=458-61A-211</a></div>
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<div dir="ltr" class="x_gmail_attr">On Thu, Dec 12, 2019 at 2:54 PM Jennifer Modak <<a href="mailto:jennifer@modaklaw.com" target="_blank">jennifer@modaklaw.com</a>> wrote:<br>
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<p class="x_MsoNormal">Hello All, <u></u><u></u></p>
<p class="x_MsoNormal">I got a very helpful response to my last query. Thank you.
<u></u><u></u></p>
<p class="x_MsoNormal"><u></u> <u></u></p>
<p class="x_MsoNormal">I am pondering a transfer of real property (cabin) owned by Husband and Wife into an LLC held by Husband and Wife and their two children. I am trying to parse out how to minimize excise transfer tax, such as transferring 49% the first
year, 49% the second year, and 2% the final year. Any insight would be very helpful.
<u></u><u></u></p>
<p class="x_MsoNormal"><span style="font-family:"Times New Roman",serif">Jennifer M. Modak<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-family:"Times New Roman",serif">Attorney at Law<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-family:"Times New Roman",serif">Law Office of Jennifer Modak, PLLC<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-family:"Times New Roman",serif">19125 North Creek Parkway, Suite 120<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-family:"Times New Roman",serif">Bothell, WA 98011<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-family:"Times New Roman",serif">206-747-0477<u></u><u></u></span></p>
<p class="x_MsoNormal"><span style="font-size:12pt"><u></u> <u></u></span></p>
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<div style="font-size:12.8px"><span style="font-family:tahoma,sans-serif"><font size="2"><span style="color:rgb(102,102,102)"><span style="line-height:19.5px">Respectfully,</span></span></font><font color="#888888"><span style="color:rgb(102,102,102)"><span style="font-size:13.5pt"><b><font size="2"><br>
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</font></span></span></font><font color="#888888" style="color:rgb(136,136,136); font-size:12.8px"><span style="color:rgb(102,102,102)"><span><font face="tahoma, sans-serif" size="4">J</font><font size="1"><font face="tahoma, sans-serif">ULIE</font> </font><span style="font-size:13.5pt; font-family:tahoma,sans-serif"><font size="4">A.</font></span><span style="font-family:tahoma,sans-serif"><span style="font-size:13.5pt"> </span><font style="font-size:13.5pt">M</font><font size="1">ARTINIELLO</font></span><span style="font-size:13.5pt"> |</span><font color="#888888" style="font-size:13.5pt"> </font></span></span></font><span style="color:rgb(102,102,102); font-size:18px; font-family:tahoma,sans-serif"><font color="#888888" size="4">P</font></span><font size="1" style="color:rgb(102,102,102)">ARTNER </font><font color="#888888" style="color:rgb(136,136,136); font-size:12.8px"><span style="color:rgb(102,102,102)"><span><span style="font-size:13.5pt">|</span><font style="font-size:13.5pt"> <span style="font-family:tahoma,sans-serif">D</span></font><font size="1">IMENSION </font><span style="font-size:13.5pt; font-family:tahoma,sans-serif"><font size="4">L</font></span><font color="#888888" size="1">AW</font><font style="font-size:13.5pt"> <span style="font-family:tahoma,sans-serif">G</span></font><font color="#888888" size="1">ROUP</font><span style="font-size:13.5pt; font-family:tahoma,sans-serif"><font size="4"> <font color="#888888" size="4">P</font></font></span><font size="1">LLC </font></span></span><span style="color:rgb(31,73,125); font-size:13px"></span></font><span><br style="font-size:12.8px">
<font color="#888888" style="color:rgb(136,136,136); font-size:12.8px"><span style="color:rgb(31,73,125); font-size:13px"></span><font size="2"><span style="color:rgb(31,73,125)"><span style="color:rgb(102,102,102)"></span></span></font></font><font style="font-size:13px"><span style="font-family:tahoma,sans-serif"><span style="color:rgb(102,102,102)">130
Andover Park East, Suite 300 | Tukwila, WA 9</span><span style="color:rgb(102,102,102)">8188</span></span></font></span></div>
<div style="color:rgb(34,34,34); font-size:12.8px"><font color="#888888" style="color:rgb(136,136,136); font-size:12.8px"><span style="font-family:tahoma,sans-serif"><span style="color:rgb(102,102,102)"><span style="line-height:19.5px"><span style="color:rgb(255,0,0)"><span style="color:rgb(246,178,107)"><font color="#888888" style="font-size:13px"><font size="1"><span style="color:rgb(31,73,125)"><font size="2"><span style="color:rgb(61,133,198)">t: <u><a value="+12063891643" style="color:rgb(34,34,34)">206.973.3500 </a></u>|
f: <u><a value="+12063891708" style="color:rgb(34,34,34)">206.577.5090</a></u>| </span></font></span></font></font><span style="color:rgb(61,133,198)"><span><span><span style="font-size:13px">e:</span><font size="1"> JULIE</font><u style="font-size:13px"><a value="+12063891708" style="color:rgb(34,34,34)">@dimensionlaw.com</a></u></span></span><span style="font-size:13px">|<font color="#888888"> </font><a href="http://www.dimensionlaw.com/" target="_blank" style="color:rgb(17,85,204)">www.dimensionlaw.com</a></span></span></span></span></span></span></span></font></div>
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