Christopher S. Mulvaney,

Attorney and Counselor-at-Law

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THIS WEBSITE INCLUDES GENERAL INFORMATION & THE OPINIONS OF CHRISTOPHER S. MULVANEY. IT IS INTENDED TO STIMULATE A BASIS FOR QUESTIONS RELATED TO YOUR PARTICULAR FACTUAL CIRCUMSTANCES — BEFORE YOU ACT.  THIS WEBSITE DOES NOT CONSTITUTE LEGAL ADVICE. IF YOU WANT LEGAL ADVICE, PLEASE MAKE A ZOOM APPOINTMENT TO SPEAK WITH ME.

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The use of email or this form for communication with MULVANEY LAW OFFICE, PLLC does not establish an Attorney-Client Relationship. If you don’t think I have responded, please check your spam folder. Time-sensitive information should not be sent through this Form or through email. Sensitive information can be uploaded to an encrypted Dropbox folder in your client file. Google Review Link Yelp Review Link

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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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“As long as the world shall last there will be wrongs, and if no man objected and if no man rebelled, those wrongs would last forever.”

– Clarence Darrow (1857-1938), prominent American lawyer

Knowing how real estate is titled during life and how it passes to heirs after death in Washington State is crucial for several reasons, particularly in the context of estate planning and ensuring your property is handled according to your wishes. 

Here’s why it’s important:

1. Estate Planning and Avoiding Probate:

• Property Ownership and Inheritance: The way real estate is titled significantly impacts how it’s transferred upon the owner’s death. Understanding this can help you plan for the smooth transfer of your property and potentially avoid probate, which is a legal process that can be time-consuming and expensive.
• Trusts, and Transfer-on-Death Deeds: Knowing the different methods for passing real estate, like utilizing a trust, or a Transfer-on-Death Deed (TODD), is essential for ensuring your property passes to your desired beneficiaries.
• • TODDs: TODDs allow property owners to directly transfer real property to a beneficiary upon death without going through probate. This can be a cost-effective option to avoid probate, though it’s important to consider any outstanding debt on the property, as beneficiaries take the property subject to existing liens and mortgages.
  • Trusts: Placing property in a revocable living trust can help bypass probate and facilitate direct transfer to beneficiaries.
• Community Property: Washington State is a community property state. Understanding this means recognizing that property acquired during marriage is held as Joint Tenants With Right of Survivorship (JTWROS) no matter how it is titled (unless a spouse signs a Quitclaim Deed and it is recorded) meaning that if one spouse dies, the surviving spouse records the death certificate and cover sheet, and the county recorder changes the title to the surviving spouse’s name as an unmarried person as sole and separate property because the surviving spouse is a widow or widower.

• Step up in Cost basis of the whole home for the surviving spouse: Federal law steps up the cost basis of the deceased spouse’s undivided one half of a community property home. Washington State law steps up the remaining undivided one half of a community property home belonging to the surviving spouse. So, when the surviving spouse sells a few months after the death of a spouse, there is no tax on the gain because there is no gain. For example, my neighbors bought their house new in 1969. When the husband died in 2020, the house had been appreciating for 51 years. This is a gain of about $2 million. A 15% capital gains rate would result in a $300,000 tax bill. My neighbor paid nothing because she sold the house a couple of months after her husband died.

2. Avoiding Complications and Delays:

• Probate and Intestate Succession: If no estate planning is in place and the property is not titled with a right of survivorship, it will likely go through probate. Understanding the probate process and intestate succession laws (how property is distributed when there’s no will) can help families navigate these complex legal processes.
• Contested Probate: Knowing how property is titled can help prevent disputes regarding the distribution of assets during probate.
• Liens and Debts: Inherited property may have outstanding liens or unpaid taxes, and understanding how these impact the transfer is important. Proper estate planning can address how these are handled. 

3. Financial and Tax Implications:

• Estate Taxes: Washington State has an estate tax, and knowing its exemptions and rates, particularly after the changes effective July 1, 2025 raising the exemption to $3 million and raising the top marginal tax rate to 35% (the highest in the nation-Hawaii is second at 20%), is important for financial planning.
• Real Estate Excise Tax: The transfer of inherited property using a Transfer on Death Deed (TODD) is generally exempt from Washington’s real estate excise tax. 

In summary, understanding how real estate is titled during life and how it passes to heirs after death in Washington State empowers individuals to: 

• Make informed decisions about property ownership and estate planning.
• Ensure their property is transferred according to their wishes.
• Potentially avoid or minimize the complexities and costs of probate.
• Address potential legal and financial challenges proactively. 

It is highly recommended to consult with Christopher S. Mulvaney to receive personalized advice tailored to your specific situation and ensure proper legal procedures are followed.

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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.