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<p class="MsoNormal">Thanks to all who answered, off- and online. We are bringing in a CPA to crunch the numbers for the family. There are step-up in basis issues as well that are well out of my wheelhouse.<o:p></o:p></p>
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<p class="MsoNormal"><a name="Paul_A__Neumiller"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><img width="250" height="150" style="width:2.6in;height:1.5583in" id="_x0000_i1027" src="cid:image001.jpg@01D79048.8AE57EA0"></span></a><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>John McCrady<br>
<b>Sent:</b> Thursday, August 12, 2021 2:50 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Erroneous Deeds-Title gurus<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">The deed was certainly created amiss, but I don’t think the LLC’s intended interest can be ignored. If Mom and Mom’s family want title back in the Trust I would
think that a deed from Mom LLC to the Mom as Trustee of the Mom trust would be in order. Perhaps WAC 458-61A-211 (5) has the flexibility to fit your fact pattern.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">John McCrady<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Counsel<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Puget Sound Title Company<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">5350 Orchard Street West<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">University Place WA 98467<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">253-476-5721<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><a href="mailto:j.mccrady@pstitle.com">j.mccrady@pstitle.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><img border="0" width="420" height="129" style="width:4.375in;height:1.3416in" id="Picture_x0020_2" src="cid:image002.jpg@01D79048.8AE57EA0" alt="Picture4"></span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Bodoni MT",serif;color:#1F497D">Beginning July 26, 2021, recording fees for most documents recorded in Washington
</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><a href="https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.piercecountywa.gov%2FDocumentCenter%2FView%2F105275%2FRecording-Fee-Schedule-Effective-Jul-25-2021-&data=04%7C01%7C%7C6e6d6ff4fe994cd2c3c208d95ddb9d26%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637644020083840406%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=QzKzpcPNXpG47jgMwnOKVTfaLWf9CALijZJO54qtn%2Bg%3D&reserved=0"><b><span style="font-size:13.0pt;font-family:"Bodoni MT",serif">will
increase by $100</span></b></a></span><b><span style="font-size:13.0pt;font-family:"Bodoni MT",serif;color:#1F497D">. Please be sure to collect recording fees accordingly. Due to the above increase, our Reconveyance fees will also be increased by $100.00</span></b><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><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>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Paul Neumiller<br>
<b>Sent:</b> Thursday, August 12, 2021 1:29 PM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBARP] Erroneous Deeds-Title gurus<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoPlainText">Mom signs deeds (prepared by an attorney, no less) that state that Mom, as trustee of the Mom Trust, quitclaims real property to Mom, as manager of the Mom LLC. HUH?!?!?!? Ok, the Mom LLC is properly formed with Mom as manager but
Mom does not hold any LLC units. Mom is elderly and the family wants to take advantage of the step-up in basis for the real property. My conclusion is that the deeds are erroneous because the LLC is a legal entity and can take ownership in the real properties
outright. The deeds should not have said to Mom as manager of the Mom LLC but simply to the Mom LLC directly. And my quick research indicates that a member in a LLC does get a step up in basis but only to the extent of that one member (and surviving spouse)
BUT, remember, Mom is only the manager and not a beneficial member of the LLC.<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">So, the family and Mom wants the real property cleanly BACK into the Mom Trust. Should the family: 1) do nothing because the deeds from Mom as trustee to Mom as manager of the LLC will have no legal impact (seems risky, maybe a court
will say the deeds are wrong but the default is that MOM holds the property outright) OR 2) record deeds from Mom as manager of the LLC to Mom as Trustee of the Mom Trust? If we record new deeds, what exemption is there for the real estate excise tax? Correction
deed? Gift deed? Say we are only unringing the bell? <o:p></o:p></p>
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<p class="MsoPlainText"><a name="Paul_A__Neumiller2"><img border="0" width="250" height="150" style="width:2.6in;height:1.5666in" id="Picture_x0020_1" src="cid:image003.jpg@01D79048.8AE57EA0" alt="Paul A_ Neumiller2"></a><o:p></o:p></p>
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