<html><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><body dir="auto">Jeanne is absolutely right. I’ve been at this long enough to remember having my boss explain why we had language requiring assets to first be distributed to the Grantor, who would make the gift. It was around 1998 or 99 that I learned the law had changed and eliminated that requirement from my trusts going forward. <div><br></div><div>John J. Sullivan<br><br><div dir="ltr">Sent from my iPad</div><div dir="ltr"><br><blockquote type="cite">On Jun 2, 2023, at 9:56 AM, Jeanne Dawes <jjdawes@goregrewe.com> wrote:<br><br></blockquote></div><blockquote type="cite"><div dir="ltr">
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;color:blue">Mark, in doing some research (for the same reason you asked your question below) I came across this article and thought you would be interested.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;color:blue">Apparently the problem was solved in the Taxpayer Relief Act of 1997, and you no longer need to worry about whether a direct gift from a revocable trust made within
3 years of Trustor’s death will be includable in Trustor’s gross estate for purposes of estate tax. I am assuming WA Estate Tax rules follow since it follows the federal rules, but I have not done any independent research on that.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Calibri",sans-serif;color:blue"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:0in"><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" style="margin-bottom:0in"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in"><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:"TypoUpright BT";color:blue">Dawes</span></i></b><b><i><span style="font-size:18.0pt;font-family:"Bella Donna";color:blue"><o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom:0in"><span style="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" style="margin-bottom:0in"><span style="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>
<p class="MsoNormal" style="margin-bottom:0in"><span style="color:blue">103 E. Indiana Avenue, Suite A</span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in"><span style="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" style="margin-bottom:0in"><span style="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" style="margin-bottom:0in"><span style="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" style="margin-bottom:0in"><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"> wsbarp-bounces@lists.wsbarppt.com
<wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Mark Anderson<br>
<b>Sent:</b> Monday, May 08, 2023 3:37 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Conveyance from a Revocable Trust<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:#002060">Older parents wish to transfer real property from their revocable Trust to their only son, who is married and who is the sole beneficiary under the Trust. Son wishes to have his wife on title as well.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">An iterative way to make this happen would be for the revocable Trust to transfer the property to the son, which would be exempt from excise tax under WAC 458-61A-211(2)(h). Then the son could quitclaim his
interest to himself and his wife, which would be exempt from excise tax under WAC 458-61A-203(1).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Can this be done in one transaction to avoid having to record two documents and still avoid the imposition of excise tax? It looks like it might be possible to convey title directly to the son and his wife and
still be tax exempt under WAC 458-61A-211(2)(h) because it might otherwise be considered a gift to the daughter-in-law.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">What do you all think? And what do you recommend?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#002060">Thanks.<o:p></o:p></span></p>
<p class="MsoNormal" 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><b><o:p></o:p></b></p>
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<div><A Direct Gift from a Revocable Living Trust Problem Solved.docx></div><span>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***</span><br><span></span><br><span>_______________________________________________</span><br><span>WSBARP mailing list</span><br><span>WSBARP@lists.wsbarppt.com</span><br><span>http://mailman.fsr.com/mailman/listinfo/wsbarp</span></div></blockquote></div></body></html>