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Gonzaga University School of Law – Spokane, Washington – Class of 2002 – Cum Laude The Latin phrase “Deo patriae, scientiis, artibus” translates to “For God and country through sciences and arts”. The initials A.M.D.G. on the seal of Gonzaga Law School stand for Ad Majorem Dei Gloriam, which is Latin for “For the Greater Glory of God” the Motto of the Society of Jesus (Jesuits): a Catholic religious order founded by St. Ignatius of Loyola.
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“He must make instant decisions that would take months for a lawyer.” – Paul Harvey, on policemen
Transfer on Death Deeds are not required for spouses in Washington. Titling a property as a married couple or husband and wife is the same as titling as Joint Tenants with Right of Survivorship. That means the surviving spouse will be on title as an unmarried person as sole & separate property after the death certificate is recorded with a cover sheet. In King County I can record the death certificate for $50 and you will get back confirmation of the title change the next day. Probate easily costs 50 times that much at about $2,500. Probate is even about 6 times the cost of electronic Transfer on Death Deed recording at $400.
Transfer on Death Deeds for married couples require recording two death certificates in order to transfer title. As long as one spouse is alive, that spouse owns the house. Only after both spouses pass does the house pass to beneficiaries.
The presumption of Community Property is powerful. Even if a property is titled in the name of one spouse as an unmarried person because it was purchased before marriage, recording of the death certificate of the spouse will transfer the property to the surviving spouse.
Recording requires you to pay $316.50 per recorded deed (plus postage for delivery and return to you) and wait months for the original (you can’t print out a copy) to be recorded by mail. That is why I paid to belong to an electronic recording service that has a membership fee and a per document fee, so that I can record a copy for you in a day for $400 payable by credit card at this LawPay Link (as of January 01, 2024).
You can execute the Transfer on Death Deed (TODD) via Docusign. If you don’t have legal insurance, the cost of preparation of the TODD is $350 for a total cost of $750 including recording.
The Transfer on Death Deeds (TODD) is a legal method for avoiding probate, not taxes.
Washington state is a no probate state; meaning as long as no real estate is in the Estate, and the Estate contains $100,000 or less, then no probate is required to be filed. Assets can be transferred with an Affidavit of Small Estate.
The Beneficiaries will still need to complete and record the Real Estate Excise Tax Affidavit (REETA) even though no excise tax will be owed. This was true even before 2014 when the TODD statute was enacted.
A TODD does not avoid estate tax. The estate tax is a type of transfer tax for which there is not an exemption as there is for the excise tax. This means any assets transferring at death, such as through a TODD, are taxable for estate tax purposes.
The biggest difference between a Revocable Trust and a TODD is protection for the Grantor.
Where a Revocable Trust offers some protections against creditors, a TODD does not.
While the REETA is submitted to the Department of Revenue by the County, it is sent to the REET section for review. The REETA is not shared with the Estate Tax section. If an estate is over the filing threshold of the $3,000,000, it is the executors responsibility to file an estate tax return.
AVOIDING PROBATE ON REAL PROPERTY WITH A TRANSFER ON DEATH DEED
Effective June 12, 2014, Washington State approved legislation (HB 1117) that authorizes transfer on death deeds, which allow an individual owner of real property to automatically transfer the real property to one or more designated beneficiaries upon such owner’s death.
A Transfer on Death deed is treated as a non-probate asset for Washington Estate Tax purposes, and is subject to Washington Estate Tax.
Beneficiaries take the property subject to liens, taxes, liabilities, and other encumbrances to which the decedent’s Estate is subject.
The transfer of property pursuant to a transfer on death deed will be exempt from Washington real estate transfer taxes provided that a certified copy of the death certificate of the transferor is recorded to perfect title.
A transfer on death deed creates no present interest in the beneficiary to the property and the beneficiary’s creditors cannot make a claim against the property.
During the life of the owner, a transfer on death deed does not affect the owner’s right to transfer or encumber the property.
TODD’S are the preferred method of transfer to a Trust in the future because of the unintended consequences of Quitclaim Deeds to Trusts in the present.
The shortcomings QCD’s were addressed by the Transfer on Death Deed Statute passed by the Legislature in 2014.
1. QCD’s require transfers out of the Trust to refinance;
2. QCD’s to Trusts may interfere with title insurance;
3. QCD’s to Trusts may make selling more cumbersome and expensive;
4, Most importantly for landlords a QCD to a Trust and an LLC is not possible, but a QCD to an LLC for a present transfer, and a TODD for a future transfer allows for liability protection and avoidance of Probate; and
5. QCD’s require a Trust, but TODD’s do not, so TODD’s frequently name adult children directly which makes the transfer an easier one step process instead of two steps.
6. If a property is in a Trust and the owner wants to transfer the property to an LLC, two steps are required: a Quitclaim Deed from the Trust to the Individual; and a Quitclaim Deed from the individual to the LLC.
Paper recording costs $316.50; Electronic recording costs $400 and is much faster and easier, so doubling the recording fees can add up.
To Always Be a Human Being First, and My Role Second. To First, Do No Harm, then to provide the best legal outcome, smoothest process, best value, and to make a positive difference in the life of every client.
Christopher S. Mulvaney’s Mantra:
May I be filled with loving kindness for all life. May I be safe from dangers within and without. May I be healthy in body, mind, socially, and spiritually. May I be at ease and happy, doing good in the world.
May You be filled with loving kindness for all life. May You be safe from dangers within and without. May You be healthy in body, mind, socially, and spiritually. May You be at ease and happy, doing good in the world.
I am an experienced solo estate planning, debtor bankruptcy, and real estate attorney. At my law firm in Bellevue, Washington between Eastgate and Factoria, I do things a little differently. I am passionate about helping people take control of their lives.
One of my primary practice areas is urgent (bankruptcy), and the other is important, but not urgent (estate planning). Not letting the urgent crowd out the important is key. I have made a choice to include the positive difference I make in the life of each client in how I calculate profit. This means I have higher job satisfaction, and happy clients who confidently give referrals.
My goal is that my work is transformative for people during a challenging time in their lives. At Mulvaney Law Offices, PLLC (MLO), you will not find a gatekeeper. There are no forgotten cases hiding on an associate’s cluttered desk. It’s just me, working with each one of my clients one-on-one to resolve their legal concerns as favorably as possible.
As your lawyer, I will personally handle every aspect of your case. My office is not a factory churning out thousands of filings per year, where each case matters little. You, and your case, matter to me. You can see what clients have said about me, and leave your own reviews at these links.
Mulvaney Law Offices, PLLC is located in Bellevue, Washington, representing estate planning & chapter 7 and chapter 13 bankruptcy, clients in all 39 Washington Counties.
Washington State residents can meet with me in Zoom/DocuSign from anywhere in the world, and I can notarize their electronic signatures because I am a remote online notary. Just email me an image of your photo ID.
