Bulletin: WA2016002

Dear Associates:

A recent Bulletin discussed 2016 HB 2539, which clarified the documentation necessary to claim excise tax exemption for transfers by operation of law where the property passed from a decedent to heir(s) without probate. That documentation is in the form of a Lack of Probate Affidavit, the contents of which were enumerated in the statute. The Washington Department of Revenue has promulgated a form of the Lack of Probate Affidavit, which is now available on the DOR website:

http://dor.wa.gov/Docs/forms/RealEstExcsTx/Lackofprobateaffidavit.pdf  

Please note that HB 2539 provides that the documentation provided to the Treasurer to claim the exemption must also be recorded with the Auditor. The Lack of Probate Affidavit promulgated by the DOR is not in recordable form and may incur additional fees for recording a non-conforming document. As an alternative to higher recording fees, the attached Lack of Probate Affidavit is in recordable form. Check with your county as to the preferred manner of complying with the statute.

HB 2539 is effective June 9, 2016.

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