Real Estate Transfer Fee Common Questions V-W

Value of Property (Subject to Transfer Fee)

1. Is a gift of real estate between a grandparent grandchild exempt from fee per state law (sec. 77.25(8), Wis. Stats.)?


2. Is there a table we can use to calculate the value of a life estate retained or remainder interest being conveyed?


3. What is the value subject to fee on a conveyance of a vacant lot with a contract to construct a building?

Will, Descent or Survivorship

1. If four siblings receive real estate and other assets in equal shares per a will, does state law (sec. 77.25(11), Wis. Stats.), "By will, descent or survivorship", apply where an agreement between the heirs' states one heir will receive the real estate and the remaining heirs will receive other assets?


2. A trust beneficiary receives a Trustee's Deed using Exemption 11 on the transfer return. Does it qualify for Exemption 11, by will descent or survivorship?


3. Is a sale per a will exempt from a transfer fee under state law (sec. 77.25(11), Wis. Stats.)?

Value of Property (Subject to Transfer Fee)

1. Is a gift of real estate between a grandparent grandchild exempt from fee per state law (sec. 77.25(8), Wis. Stats.)?
   

   Yes. Exemption 8 is between parent and child, stepparent and stepchild, parent and son-in-law, parent and daughter-in-law, or grandparent and grandchild for nominal or no consideration.

2. Is there a table we can use to calculate the value of a life estate retained or remainder interest being conveyed?
   

   Yes. You may use the table in the Wisconsin Department of Health and Family Services Medicaid Eligibility Handbook, located at: emhandbooks.wi.gov/meh-ebd. To calculate, multiply the entire property's estimated value by the factor in the table from the handbook's appendix.

3. What is the value subject to fee on a conveyance of a vacant lot with a contract to construct a building?
   

   The value subject to transfer fee is only the value of the real property at the time of conveyance. The improvement value is included with the lot value only on the percentage of improvements completed at the time of conveyance.

   Examples:

   • If there is only a vacant lot with a construction contract - include lot value only

   • Improvements are 50 percent completed - include lot value plus 50 percent of the value of the improvements

   • Improvements are 100 percent completed - include lot value plus total value of the improvements

   Note: For more information, review R and R Development Group, LLC v. Wisconsin Department of Revenue, Wisconsin Tax Appeals Commission, Docket No. 97-T-212, Decision and Order dated February 11, 1999.

Will, Descent or Survivorship

1. If four siblings receive real estate and other assets in equal shares per a will, does state law (sec. 77.25(11), Wis. Stats.), "By will, descent or survivorship", apply where an agreement between the heirs' states one heir will receive the real estate and the remaining heirs will receive other assets?

   Yes. In this case, the conveyance is by will, descent or survivorship and Exemption 11 applies. However, if the heir receiving the real estate must pay the estate or siblings any consideration, that amount is subject to transfer fee. This may happen when the real estate value is greater than the other assets and the payment to the estate creates equal shares. In this case, when completing the "Fee section" of the return, the total real estate value conveyed is the property's estimated value. The total value subject to fee is the amount paid to the estate; select Exemption 11 for the balance of the total real estate value.

2. A trust beneficiary receives a Trustee's Deed using Exemption 11 on the transfer return. Does it qualify for Exemption 11, by will descent or survivorship?
   

   No. The exemption per state law (sec. 77.25(11), Wis. Stats.), only applies to conveyances from an estate (deceased individual) made by will, decent or survivorship. The Trustee's Deed is exempt instead under sec. 77.25(9), Wis. Stats., "from a trustee to a beneficiary," if the conveyance is to a beneficiary of the trust for no consideration.

3. Is a sale per a will exempt from a transfer fee under state law (sec. 77.25(11), Wis. Stats.)?
   

   No. The sale price is the value subject to transfer fee.

Questions?

Contact us at RETR@wisconsin.gov.