<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Verdana;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:"Bookman Old Style";
panose-1:2 5 6 4 5 5 5 2 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal;
font-family:"Arial",sans-serif;
color:black;
font-weight:normal;
font-style:normal;
text-decoration:none none;}
span.EmailStyle18
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>I infer from your description that in the minds of the three heirs there is a perhaps unconscious assumption that the $400,000 value can be divided as follows:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>$210,000 cash (which is consideration)<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>$56,666.67 services rendered (which is also consideration)<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>$133,333.33 inheritance (which is not consideration)<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>So excise tax would be owing on consideration paid of $266,666.67<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='color:#1F497D'>John McCrady<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Counsel<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Puget Sound Title Company<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>5350 Orchard Street West<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>University Place WA 98467<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>253-476-5721<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><a href="mailto:j.mccrady@pstitle.com"><span style='color:#0563C1'>j.mccrady@pstitle.com</span></a><o:p></o:p></span></p><p class=MsoNormal style='margin-top:6.0pt'><b><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>WARNING-FRAUDULENT FUNDING INSTRUCTIONS </span></b><b><span style='font-size:4.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></b></p><p class=MsoNormal style='margin-top:6.0pt'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Email hacking and fraud are on the rise to fraudulently misdirect funds. Please call your escrow officer immediately using contact information found from an independent source, such as the sales contract or internet, to verify any funding instructions received. We are not responsible for any wire sent by you to an incorrect bank account.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:10.0pt;font-family:"Verdana",sans-serif;color:#2E74B5'>***Due to the Covid 19 outbreak and with concern for the health and safety of our employees and community; our <b>University Place</b> lobby will remain locked during normal business hours. </span><b><span style='font-size:10.0pt;font-family:"Verdana",sans-serif;color:#0066CC'>If you need to make an appointment or have any questions or concerns, please contact us at our main office at 253-474-4747.</span></b><span style='font-size:10.0pt;font-family:"Verdana",sans-serif;color:#0070C0'> </span><span style='font-size:10.0pt;font-family:"Verdana",sans-serif;color:#2E74B5'>We appreciate your patience during these uncertain times and look forward to consistently exceeding your expectations.***<o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Kristina Driessen<br><b>Sent:</b> Friday, November 20, 2020 7:20 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Excise tax question with part inheritance part consideration<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'>Good Morning:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'>Maybe I way over thinking this but I am spinning my wheels on this issue.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'>Facts: An estate has been opened with the courts, [intestate]. The only real asset is a home [plus a very small bank account] There are 3 heirs. One of the heirs wishes to purchase the home as she has been residing in the home caring for the decedent. All agree to give the heir that cared for the decedent a larger percentage of the home. There are not enough assets to do a like kind sort of transfer. Heir is obtaining a loan to buy the home. The sale price to the one heir is 210,000.00<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'>Just throwing out numbers…. If the home is valued at $400,000.00 each heir technically has an interest valued at $133,333.33. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'>Would the excise tax be on the 210K OR difference in the sale price and her actual inheritance =$76,666.67 OR the difference in the value and her actual inheritance $267,666.67.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'>Thanks in advance!<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:black'><o:p> </o:p></span></p><p class=MsoNormal><i><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>Kristina A. Driessen<o:p></o:p></span></i></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>“A” Street Legal Services, Inc. P.S<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>Attorneys at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>16 A Street SE<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>Auburn, WA. 98002<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>(253) 939-0811<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>(253) 939-0471 fax<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'>astreetlegalservices.com<o:p></o:p></span></p><p class=MsoNormal><u><span style='font-size:10.0pt;font-family:"Bookman Old Style",serif;color:black'><a href="mailto:kristina@rdattys.comcastbiz.net">kristina@rdattys.comcastbiz.net</a><o:p></o:p></span></u></p><p class=MsoNormal><span style='font-size:12.0pt;color:black'><o:p> </o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:9.0pt;color:black'>CONFIDENTIALITY NOTICE</span></b><span style='font-size:9.0pt;color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;color:black'>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 253.939.0811 that you have received the message in error, and then delete it. Thank you.<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:9.0pt;color:black'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div>
</body></html>