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<p class="MsoNormal">I agree with Bryce. Also, under WAC 458-61A-202, see Subparagraph (5)(c) Example 4, under “Subsequent transfers,” where ‘Sheri’ wants sole ownership and her two sisters want cash in lieu of their respective 1/3 shares—but there are no
(or in Gabriel’s case) insufficient other distributable estate assets to qualify as acquired in a (fully) nonpro rata distribution. There, all the real estate excise tax is reported and paid under a “prior” separate deed from Sheri’s sisters to the estate
PR as grantee; then, to complete the distribution, the estate PR can then make a separate deed from the estate to Sheri whereby she acquires sole ownership and by the REETA can simply claim “inheritance or devise.” No valuable consideration will have passed
from the grantee to the grantor.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I have prepared a TEDRA, to be available as “additional documentation” should such be requested by the recording officer or DOR, or the mortgage lender. As part of the TEDRA recitals, the dollar values of the “inherited share portion”
and the “purchase money” portions can be documented, and the parties can allocate the responsibility for real estate excise tax and other closing costs. If institutional financing will be involved, the TEDRA might complement or substitute for a purchase and
sale agreement, and might help the “borrower” qualify for more favorable “refinance” loan terms, based on the inherited portion.</p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sent from <a href="https://go.microsoft.com/fwlink/?LinkId=550986">
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="border:none;padding:0in"><b>From: </b><a href="mailto:Bryce@dillelaw.com">Bryce Dille</a><br>
<b>Sent: </b>Friday, May 5, 2023 9:16 AM<br>
<b>To: </b><a href="mailto:wsbarp@lists.wsbarppt.com">WSBA Real Property Listserv</a><br>
<b>Subject: </b>Re: [WSBARP] REET and TEDRA Agreement Question</p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The would be excise tax due see pararaph (3) subsequent transfer under WAC458-61A-202<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Bryce H. Dille<o:p></o:p></p>
<p class="MsoNormal">Dille Law, PLLC<o:p></o:p></p>
<p class="MsoNormal">2010 Caton Way SW Ste. 101<o:p></o:p></p>
<p class="MsoNormal">Olympia, WA 98502<o:p></o:p></p>
<p class="MsoNormal">Office: 360-350-0270<o:p></o:p></p>
<p class="MsoNormal">Cell: 253-579-5561<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif;color:black"><img border="0" width="147" height="39" style="width:1.5312in;height:.4062in" id="yiv4204109992_x005f_x0000_i1027" src="cid:image001.png@01D97F31.1A28D930" alt="R_Alan_Swanson-WH-200"></span><o:p></o:p></p>
<p class="MsoNormal">** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">This transmission contains confidential attorney-client communications and may not be disclosed to any person but the intended recipient(s). If this matter is transmitted to you in error, please notify the sender immediately. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Business Entity Creation and Management, Business, Government and Tax Law, Real Estate and Land Use, Residential, Commercial and Condominium Development Real Estate and Commercial Transactions & Closings, Including Performing Services as
IRS Section 1031 Exchange Facilitator Estate Planning, including Wills and Trusts, and Probate Administration Representation Homeowners/Condominium Association Real Estate Developments Real Property Foreclosures and Forfeitures.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></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>Gabriel Dietz<br>
<b>Sent:</b> Thursday, May 4, 2023 4:42 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] REET and TEDRA Agreement Question<o:p></o:p></p>
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<p class="MsoNormal">Good Afternoon Listmates,<o:p></o:p></p>
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<p class="MsoNormal">Mom passed away in 2014. Dad passed away in 2022. Daughters A, B, and C are the surviving relatives and beneficiaries under Mom's credit trust. Dad was the trustee until he died. Daughter A is now the trustee. The house is valued at $2.7M
in the trust. There is also $800,000 in other assets in the trust. A, B, and C want to distribute the other assets evenly to A and B and distribute the house to C. C would owe A and B $1,533,333.33, or $766,666.67 each as a result from an accounting perspective
to make distributions valued the same. Under WAC 458-61A-202 is excise tax due on $1,533,333.33 as payment from C to A and B, for C to take sole title? I thought I would check with those more experienced since I haven't done this exact scenario before.<o:p></o:p></p>
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<p class="MsoNormal">Thank you,<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Arial",sans-serif;color:black">Gabriel A. Dietz</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Arial",sans-serif;color:black">Partner</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Arial",sans-serif;color:black">Hoerschelmann Dietz PLLC<br>
p: (206) 451-3859</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><span style="font-family:"Arial",sans-serif;color:black">f: (206) 337-4506</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><a href="mailto:gabe@hdpnw.com" target="_blank"><span style="font-family:"Arial",sans-serif;color:#1155CC">gabe@hdpnw.com</span></a><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.hdpnw.com_&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=ZjJT61sMYHYXW1a7W0qvaz-zO3o_Ea2RRxXvW5Yr3-0&m=s4ctz5Bj_8yvRs_y9XLc774-VubItQJogO7xeM4ExDM&s=z9_qumynJiw3BExypO4LT7bpunAvZyYnT_8XpNR5c_0&e=" target="_blank"><span style="font-family:"Arial",sans-serif">www.hdpnw.com</span></a><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto"><o:p> </o:p></p>
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<p class="MsoNormal" style="margin-top:1.5pt"><span style="font-family:"Arial",sans-serif;color:black">CONFIDENTIALITY NOTICE: This communication, including any attachments, contains privileged or confidential information intended for a specific individual
and purpose, and is protected by law. If you are not the intended recipient, you should delete this communication and shred the materials and any attachments. You are hereby notified that any use, disclosure, copying, or distribution of this communication,
or the taking of any action in reliance on the contents of this information, is strictly prohibited. If you have received this transmission in error, please immediately notify me by email or telephone.</span><span style="color:#222222"><o:p></o:p></span></p>
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