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<p class="MsoNormal">I favor TODDs as a recommendation for clients. The likelihood of avoiding probate is high and well worth the cost.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-family:"Berlin Sans FB",sans-serif">Andrew Hay<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:"Berlin Sans FB",sans-serif">Hay & Swann PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Berlin Sans FB",sans-serif">201 S. 34<sup>th</sup> St.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Berlin Sans FB",sans-serif">Tacoma, WA 98418<o:p></o:p></span></p>
<p class="MsoNormal"><a href="http://www.washingtonlaw.net"><i><span style="font-family:"Berlin Sans FB",sans-serif;color:#0563C1">www.washingtonlaw.net</span></i></a><i><span style="font-family:"Berlin Sans FB",sans-serif"><o:p></o:p></span></i></p>
<p class="MsoNormal"><a href="mailto:andrewhay@washingtonlaw.net"><i><span style="font-family:"Berlin Sans FB",sans-serif;color:#0563C1">andrewhay@washingtonlaw.net</span></i></a><i><span style="font-family:"Berlin Sans FB",sans-serif"><o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-family:"Berlin Sans FB",sans-serif">He/him/his<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Berlin Sans FB",sans-serif">253.272.2400 (w)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Berlin Sans FB",sans-serif">253.377.3085 (c)<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><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>Heather de Vrieze<br>
<b>Sent:</b> Tuesday, December 5, 2023 8:50 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] TODD v Probate<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">I find that a TODD has the same issues regarding insurance that property selling through probate may have, except, without the normal probate notice to creditors (or a nonprobate one) title insurers want indemnification
from the beneficiary selling. I have had some suggest that waiting until the 2 year SOL for claims runs is their preference.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:16.0pt;font-family:"Vladimir Script";color:#1F497D;mso-ligatures:standardcontextual">Heather S. de Vrieze</span><b><span style="font-size:16.0pt;color:#1F497D;mso-ligatures:standardcontextual"><br>
</span></b><i><span style="font-family:"Garamond",serif;color:#1F497D;mso-ligatures:standardcontextual">Attorney-at-Law</span></i><i><span style="font-family:"Garamond",serif;color:#1F497D"><o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Garamond",serif;color:#1F497D"><img border="0" width="189" height="105" style="width:1.9666in;height:1.0916in" id="Picture_x0020_1" src="cid:image001.jpg@01DA275A.8B126770"></span></i><i><span style="font-size:12.0pt;font-family:"Garamond",serif;color:#1F497D;mso-ligatures:standardcontextual"><o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">3909 California Avenue SW<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">Seattle, WA 98116-3705
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">(206)938-5500
<o:p></o:p></span></p>
<p class="MsoNormal"><a href="mailto:heatherd@westseattlelaw.com"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">heatherd@westseattlelaw.com</span></a><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">
<o:p></o:p></span></p>
<p class="MsoNormal"><a href="http://www.westseattlelaw.com/"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">www.westseattlelaw.com</span></a><span style="font-size:10.0pt;font-family:Nyala;color:#44524E;mso-ligatures:standardcontextual">
<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#002E8A;mso-ligatures:standardcontextual">Click here to connect with de Vrieze | Carney on Facebook:
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<p class="MsoNormal"><span style="font-size:8.0pt;color:#A6A6A6;mso-ligatures:standardcontextual"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;color:#A6A6A6;mso-ligatures:standardcontextual">CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally privileged and/or confidential information. If you have received this e-mail in error, please
notify the sender immediately and delete all copies of this e-mail message and any attachment.</span><span style="font-size:16.0pt;font-family:"Cambria",serif;color:blue;mso-ligatures:standardcontextual"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
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<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>Erin Fairley<br>
<b>Sent:</b> Monday, December 4, 2023 7:04 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> Re: [WSBARP] TODD v Probate<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thoughts on caveats to Transfer on Death Deeds v Probate? Thank you!
<o:p></o:p></p>
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<p class="MsoNormal">Sent from my iPad<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><o:p> </o:p></p>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal" style="margin-bottom:12.0pt">On Dec 4, 2023, at 2:26 PM, Dwight Bickel <<a href="mailto:dwight@dwightbickel.com">dwight@dwightbickel.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">In typical practice, the referenced exception appears only upon a preliminary commitment, and the exception is not allowed by the proposed purchaser that is not an heir, nor allowed by a proposed
purchase-money mortgage lender, so it becomes a matter that the purchaser, or new lender’s escrow instructions will require to be removed from the proposed policy. The seller (or its heirs and agents) will be required to pay taxes that are due, or otherwise
convince the title company to assume the risk, so the exception is removed from the proposed policies. It is incredibly complicated for the title company to determine and to eliminate the risk of all possible succession taxes. That liability does not require
recorded claims of lien. Often the seller’s estate, the sellers’ heirs or even the Estate’s PR may be required to provide indemnity as a condition for the title company to assume that risk by removing that exception. It is probably not important to argue what
the exception phrasing may mean when only the proposed Insured has rights under the policy, and that exception is not going to appear on the policy [unless it is an heir who is the Insured, and often that exception can be removed for that person’s purchase-money
mortgage lender].</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">While we know that the policy is interpreted by Courts favoring the interpretation by the proposed Insured, the intent of the title companies is to broadly except from the proposed policy coverage
for any type of tax upon the Land that is due to the passing of the Title due to the death of a prior owner. In states with an Estate Tax, that exception would apply to the lien upon the Land due from the Decedent’s Estate pursuant to both Federal and State
tax laws. There are other taxes pursuant to statutes that the exception would apply to, such as DSHS rights to recover, even after the title of the Decedent expires due to joint tenancy or a life estate. Even “excise tax” due to the transfer caused by the
death of the owner would be excepted, but in WA there is an exemption that applies. In states with an inheritance tax, that exception would also apply to any tax claimed to be due from the successor heir. There are circumstances where inheritance taxes are
imposed upon Washington real property for its passing to an heir, imposed by other states where the decedent may have domiciled. The effect of such an exception would be that any subject assertion of a tax upon the purchaser due to the death of the prior owner
would be an expense that would not be reimbursed by the Covered Risks of the Policy.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-size:14.5pt;font-family:"Open Sans",sans-serif;color:#212529;border:none windowtext 1.0pt;padding:0in">According to
</span><span style="color:black"><a href="https://www.merriam-webster.com/dictionary/succession">Succession Definition & Meaning - Merriam-Webster</a></span><span style="font-size:14.5pt;font-family:"Open Sans",sans-serif;color:#212529;border:none windowtext 1.0pt;padding:0in">:</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;background:white;vertical-align:baseline">
<span class="letter"><b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#303336;border:none windowtext 1.0pt;padding:0in">1 a</span></b></span><strong><span style="font-size:14.5pt;font-family:"Calibri",sans-serif;color:#212529;border:none windowtext 1.0pt;padding:0in">: </span></strong><span class="dttext"><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">the
order in which or the conditions under which one person after another </span></span><span style="color:black"><a href="https://www.merriam-webster.com/dictionary/succeeds"><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#0074CC;border:none windowtext 1.0pt;padding:0in">succeeds</span></a></span><span class="dttext"><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in"> to
a property, dignity, title, or throne</span></span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;background:white;vertical-align:baseline">
<b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">…</span></b><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;background:white;vertical-align:baseline">
<b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">2 a</span></b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">:
the act or process of following in order <b>: </b></span><span style="color:black"><a href="https://www.merriam-webster.com/dictionary/sequence"><b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#0074CC;text-transform:uppercase;border:none windowtext 1.0pt;padding:0in;text-decoration:none">SEQUENCE</span></b></a></span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;background:white;vertical-align:baseline">
<b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#303336;border:none windowtext 1.0pt;padding:0in">b</span></b><b><span style="font-size:10.5pt;font-family:"Times New Roman",serif;color:#303336;border:none windowtext 1.0pt;padding:0in">(1)</span></b><b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">: </span></b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">the
act or process of one person's taking the place of another in the enjoyment of or liability for rights or duties or both</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;background:white;vertical-align:baseline">
<b><span style="font-size:10.5pt;font-family:"Times New Roman",serif;color:#303336;border:none windowtext 1.0pt;padding:0in">(2)</span></b><b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">: </span></b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">the
act or process of a person's becoming beneficially entitled to a property or property interest of a deceased person</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;background:white;vertical-align:baseline">
<b><span style="font-size:14.5pt;font-family:"Times New Roman",serif;color:#212529;border:none windowtext 1.0pt;padding:0in">…</span></b><o:p></o:p></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"> </span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Verdana",sans-serif;color:#174E86">Dwight A. Bickel </span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Verdana",sans-serif;color:#174E86">Real Property Title Advisor </span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Verdana",sans-serif;color:#174E86">Washington Title Professional </span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><a href="mailto:Dwight@dwightbickel.com"><span style="font-family:"Verdana",sans-serif;color:#174E86">Dwight@dwightbickel.com</span></a><span style="font-family:"Verdana",sans-serif;color:#174E86"> </span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><a href="http://dwightbickel.com"><span style="font-family:"Verdana",sans-serif;color:#174E86">http://dwightbickel.com</span></a><span style="font-family:"Verdana",sans-serif;color:#174E86"> </span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><span style="font-family:"Verdana",sans-serif;color:#174E86">206-484-1976 </span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b>From:</b> Eric Nelsen<o:p></o:p></p>
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<p class="MsoNormal">But in real property transactions when an Estate is selling real property, I routinely see title companies refer to a “lien of succession tax.”
<b>Whattheheck is a succession tax?</b> <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
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