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Christopher S. Mulvaney

In 2014, the Washington State Legislature enacted the Uniform Real Property Transfer on Death Act (RCW 64.80).

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 IRS explains transfer taxes on their website.  

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 $2,193,000, it is the executor’s responsibility to file an estate tax return.


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