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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060">Here is the response I just got from the King County recorder's office. Although I think they misunderstood the identity of the grantors and grantees in my situation
(and as inartfully worded their response is), it is clear they want two transactions.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in">That is a 2 part transaction. Since it’ll first need to be transferred from the persons to the LLC then LLC to the probated estate. It will be rejected if its in one transaction saying the same thing I’ve mention
which is that is a 2 part transaction. 2 different transactions and 2 different wac exemptions cannot be provided on 1 REETA and Deed.<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060">As to Jeanne’s comment, there is a Controlling Interest Transfer Return (Form 84 0001Be) that is submitted to the Department of Revenue when an LLC (or other entity)
conveys 50% or more of its beneficial interest. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060">Follow-up question: would a transfer from the probate estate directly to the LLC
<i>really</i> be a mere change in a form or identity such that it is exempt from excise tax under WAC 458-618-211? I would not think that that exemption would cover that conveyance.<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35">Mark B. Anderson<br>
</span></b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35">ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com"><span style="color:blue">marka@mbaesq.com</span></a><br>
<a href="http://www.mbaesq.com/"><span style="color:blue">www.mbaesq.com</span></a><b><o:p></o:p></b></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>Jeanne Dawes<br>
<b>Sent:</b> 10/26/2022 10:57 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Recording a Deed with Two Excise Tax Exemptions<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:blue">I believe there is a special form to use when an LLC conveys 50% or more of its membership interest. There will not be a deed to record, and I believe the inheritance exemption will work on the
form the LLC is to use to notify DOR of the conveyance. So on the deed from the estate to the estate created LLC it will just be one exemption the mere change of identity exemption.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:blue"><o:p> </o:p></span></p>
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<p class="MsoNormal"><i><span style="font-size:18.0pt;font-family:"TypoUpright BT";color:blue">Jeanne</span></i><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:18.0pt;font-family:"TypoUpright BT";color:blue">Jeanne J.</span></i></b><b><i><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue">
</span></i></b><b><i><span style="font-size:18.0pt;font-family:"Bella Donna";color:blue">Dawes<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">Attorney at Law</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">Gore & Grewe, P.S.</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">Spokane, WA 99207-2317</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">Voice: 509-326-7500</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue"><a href="mailto:jjdawes@goregrewe.com"><span style="color:blue">jjdawes@goregrewe.com</span></a><o:p></o:p></span></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> <b>On Behalf Of </b>michael westseattleattorney.com<br>
<b>Sent:</b> Wednesday, October 26, 2022 10:31 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] Recording a Deed with Two Excise Tax Exemptions<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="background:white"><span style="font-family:"Times New Roman",serif;color:black">In King, I had a REETA rejected with two exemptions </span><span style="font-family:"Segoe UI Emoji",sans-serif;color:black">☹</span><span style="font-family:"Times New Roman",serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="color:black">From:</span></b><span style="color:black">
<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>> on behalf of Jeanne Dawes <<a href="mailto:jjdawes@goregrewe.com">jjdawes@goregrewe.com</a>><br>
<b>Sent:</b> Wednesday, October 26, 2022 10:18 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] Recording a Deed with Two Excise Tax Exemptions</span>
<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
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<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;color:blue">I believe you can have the estate establish the LLC, then distribute the property to the LLC using the mere change of identity exemption, and then distribute membership
interests to the heirs using the inheritance exemption. </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;color:blue"> </span><o:p></o:p></p>
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<p class="xmsonormal"><i><span style="font-size:18.0pt;font-family:"TypoUpright BT";color:blue">Jeanne</span></i><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue">
</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"> </span><o:p></o:p></p>
<p class="xmsonormal"><b><i><span style="font-size:18.0pt;font-family:"TypoUpright BT";color:blue">Jeanne J.</span></i></b><b><i><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue">
</span></i></b><b><i><span style="font-size:18.0pt;font-family:"Bella Donna";color:blue">Dawes</span></i></b><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue">Attorney at Law</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue">Gore & Grewe, P.S.</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue">103 E. Indiana Avenue, Suite A</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue">Spokane, WA 99207-2317</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue">Voice: 509-326-7500</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue">Fax: 509-326-7503</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue"><a href="mailto:jjdawes@goregrewe.com"><span style="color:blue">jjdawes@goregrewe.com</span></a></span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:blue"><img border="0" width="172" height="111" style="width:1.7916in;height:1.1562in" id="x_Picture_x0020_3" src="cid:image001.png@01D8E930.2746C100"><img border="0" width="123" height="127" style="width:1.2812in;height:1.3229in" id="x_Picture_x0020_2" src="cid:image002.png@01D8E930.2746C100"></span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:blue">INFORMATION CONTAINED IN THIS E-MAIL TRANSMISSION IS PRIVILEGED AND CONFIDENTIAL. </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:blue">
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<p class="xmsonormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>
<b>On Behalf Of </b>Mark Anderson<br>
<b>Sent:</b> Wednesday, October 26, 2022 9:58 AM<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] Recording a Deed with Two Excise Tax Exemptions</span><o:p></o:p></p>
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<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060">Dear All:</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060">I have posed this question to the King County Recorder and am still waiting for an answer. Because recording issues have been on your minds lately as a topic of discussion on this listserv, I thought I would
run it by all of you.</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060">A probate estate plans to make a distribution of a single piece of real property to the heirs. I am aware that a distribution to the heirs as tenants-in-common would be exempt from excise tax as an inheritance
under WAC 458-61A-202.</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060">Instead of distributing the property to the heirs as individuals, however, the heirs have requested that the property ultimately be conveyed into an LLC owned by all of the heirs in the same proration as they
would have otherwise taken as tenants-in-common. I am aware that, so long as the owners have the same proportional interests in the property, conveyance from tenants-in-common into an LLC would be exempt from excise tax as a change in identity or form under
WAC 458-618-211.</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060">I am trying to do this as one transaction, i.e., one deed from the probate estate into the LLC. How would you annotate the exemption(s) on the real estate excise tax affidavit? Or should I just do this as
two successive transactions?</span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060">Thanks in advance. </span><o:p></o:p></p>
<p class="xmsonormal"><span style="color:#002060"> </span><o:p></o:p></p>
<p class="xmsonormal" style="margin-bottom:12.0pt"><b>Mark B. Anderson<br>
</b>ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com"><span style="color:blue">marka@mbaesq.com</span></a><br>
<a href="http://www.mbaesq.com/"><span style="color:blue">www.mbaesq.com</span></a><o:p></o:p></p>
<p class="xmsonormal" style="margin-bottom:12.0pt"><b><span style="font-family:"Arial Narrow",sans-serif;color:#002060">CONFIDENTIALITY NOTICE<br>
</span></b><span style="font-family:"Arial Narrow",sans-serif;color:#002060">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) 327-1750 that you have received the message in error, and then delete it. Thank you.</span><o:p></o:p></p>
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