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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">To my understanding, a Transfer on Death Deed does
<u>not</u> remove any of the grantor’s rights during lifetime or reduce the value of the property in the grantor’s hands. It is fully revocable to the moment of death (at least in theory, subject to capacity, etc., but that also has nothing to do with estate
tax valuation). <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">The grantor does not give up anything s/he must “take back” to fully own it again during lifetime. It is not like reserving a life estate or something like that, which indeed
may have different valuation at death for estate tax purposes. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">I would be very cautious concluding that a property subject to a TODD can be valued at any amount less than fair market value at date of death, just as it would be if it
passed through probate. (Of course, if there are multiple tenants or such fun things, then valuation is the deceased person’s interest, etc. But in general, I am not aware of any basis to value a property passed by TODD at less than FMV at date of death.)
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Best regards, Josh<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Joshua D. McKarcher<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">McKarcher Law PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">537 6th Street<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Clarkston, WA 99403<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">(509) 758-3345<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">(509) 758-3314 (fax)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><a href="mailto:josh@mckarcherlaw.com"><span style="color:#0563C1">josh@mckarcherlaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><a href="http://www.mckarcherlaw.com"><span style="color:#0563C1">www.mckarcherlaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Roger Hawkes<br>
<b>Sent:</b> Monday, May 10, 2021 5:12 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] FW: Estate Tax Avoidance<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If done correctly the todd removes some right, since further action/happenings is needed to fully own it again. So is there a difference in valuation?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Roger Hawkes, WSBA # 5173
<o:p></o:p></p>
<p class="MsoNormal"><i><span style="font-size:14.0pt">Shoreline</span></i> Office: 19944 Ballinger Way NE<o:p></o:p></p>
<p class="MsoNormal"> Shoreline, WA 98155<o:p></o:p></p>
<p class="MsoNormal"><i><span style="font-size:14.0pt">Sultan</span></i> Office: 423 Main<o:p></o:p></p>
<p class="MsoNormal"> Sultan, WA 98294<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Phone: 206 367 5000; fax: 206 367 4005<o:p></o:p></p>
<p class="MsoNormal">Email: <a href="mailto:roger@law-hawks.com"><span style="color:#0563C1">roger@law-hawks.com</span></a>
<o:p></o:p></p>
<p class="MsoNormal">Web site: <a href="http://www.hawkeslawfirm.com/"><span style="color:#0563C1">www.hawkeslawfirm.com</span></a><o:p></o:p></p>
<p class="MsoNormal"><img border="0" width="112" height="160" style="width:1.1666in;height:1.6666in" id="Picture_x0020_1" src="cid:image001.jpg@01D745C4.4AAA2490"><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Rani K. Sampson<br>
<b>Sent:</b> Monday, May 10, 2021 4:10 PM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] FW: Estate Tax Avoidance<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#1F3864">Hi, Jim,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#1F3864">That TODD is revocable, which means it’s not out of their estate. All I remember from my tax law class is IRS code 2036: Everything that you own or control at death is part
of your estate and taxable.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#1F3864"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#1F3864">Also – if you give away the house but still live there, the IRS will look at that with a squinty eye:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#1F3864"><a href="https://www.sgrlaw.com/think-you-can-give-away-ownership-in-a-home-and-continue-to-live-there-without-the-value-of-the-home-being-included-in-your-estate-think-again/">https://www.sgrlaw.com/think-you-can-give-away-ownership-in-a-home-and-continue-to-live-there-without-the-value-of-the-home-being-included-in-your-estate-think-again/</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#1F3864"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Segoe UI",sans-serif;color:#142440">Rani K. Sampson<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#142440">Overcast Law Offices
</span><span style="font-family:"Segoe UI",sans-serif;color:#7F7F7F">|</span><span style="font-family:"Segoe UI",sans-serif;color:#003300">
</span><span style="font-family:"Segoe UI",sans-serif;color:#142440">Attorney</span><span style="font-family:"Segoe UI",sans-serif;color:#003300"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#142440">23 S Wenatchee Ave #320, Wenatchee WA 98801</span><span style="font-family:"Segoe UI",sans-serif;color:#003300">
</span><span style="font-family:"Segoe UI",sans-serif;color:#7F7F7F">|</span><span style="font-family:"Segoe UI",sans-serif;color:#003300">
</span><span style="font-family:"Segoe UI",sans-serif;color:#142440">(509) 663-5588 x 6</span><span style="font-family:"Segoe UI",sans-serif;color:#003300"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Segoe UI",sans-serif;color:#1F3864"><o:p> </o:p></span></p>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Jim Doran<br>
<b>Sent:</b> Monday, May 10, 2021 12:45 PM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] Estate Tax Avoidance<o:p></o:p></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">Death and Taxes:</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">Married clients are getting old. They want to know what they can do to shelter their assets from inheritance tax here in Washington. They have a home worth $600,000.00 and financial assets of roughly $4,000,000.00.
When we do the calculations the inheritance tax would be $301,050.00 upon the death of the second spouse if they do not dispose of any of the assets. </span><span style="font-size:18.0pt">We need to shelter $2,407,000.00. </span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:18.0pt">I have two questions off the bat. All this talk of Transfer on Death Deeds makes me wonder if they do a TODD will that keep the real property out of the "estate" for purposes of the estate tax? The second
question is if they make specific beneficiaries for $2,407,000.00 worth of their financial investments, will that keep that amount out of the estate tax calculation?</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:18.0pt">And I do know that as a married couple they can gift $30,000 per year per person, but they don't want to do that for personal reasons.</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:18.0pt">I am sure there are other ways to do this. Any ideas that are not too complicated would be appreciated.</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:18.0pt">I appreciate it.</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:18.0pt">Jim Doran</span><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">James R. Doran<o:p></o:p></p>
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<p class="MsoNormal">Attorney at Law<o:p></o:p></p>
</div>
<p class="MsoNormal">100 E. Pine Street - Suite 205<o:p></o:p></p>
</div>
<p class="MsoNormal">Bellingham, WA 98225<br>
(360)393-9506<o:p></o:p></p>
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<p class="MsoNormal"><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><o:p></o:p></p>
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<p class="MsoNormal"><a href="http://www.doranlegal.com" target="_blank">www.doranlegal.com</a><o:p></o:p></p>
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