[WSBAPT] paying debts/closing insolvent estate

[Richard Wills]

*I just do a standard Ptn for NP setting forth assets & claims & add to 
it that the estate appeared to be insolvent when Letters were obtained,  
a Notice to Creditors was published, an Affidavit of Publication was 
filed, the four-month claims period has expired, & insufficient claims 
were presented to render the estate insolvent.  Therefore, the estate is 
solvent & meets that criterion for the PR to be granted NP.**  Nothing 
fancy.  Just a recitation of the pertinent facts.*


On 11/21/2014 12:01 PM, Josh Grant wrote:
> Richard
> I have a case which is now solvent after an incredible number of 
> creditor claims were not filed.  Could you share your form for that 
> petition?
> Joshua F. Grant, PS
> Attorney at Law
> P. O. Box 619
> Wilbur, WA 99185
> tel 509 647 5578
> fax 509 647 2734
> *From:* Richard Wills <mailto:richardwills at washington-probate.com>
> *Sent:* Thursday, November 20, 2014 8:56 AM
> *To:* WSBA Probate & Trust Listserv <mailto:wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] paying debts/closing insolvent estate
> *Krista --- In your circumstance, what I've done is:**
> *
>
>   * *Petition the Court for & obtain Nonintervention Powers, based on
>     the expiration of the claims period & the estate's solvency
>     thereafter.*
>   * *Send a letter to the invalid (eg, late) claimants explaining why
>     their claims are barred & won't be paid.*
>   * *Negotiate with the valid claimants & pay off their claims in the
>     negotiated amounts (in my experience, claimants typically accept
>     50-90% of their claimed amount so long as they can be paid
>     promptly; I've had loads of claims by DCM Services, who, in my
>     experience, are the most hardball, typically unwilling to accept
>     less than 80-90% of their claims --- most others are in the range
>     of 50-75%).*
>   * *Close with a Decl of Completion.*
>   * *Distribute what remains to the heirs.*
>
> *I do my best to avoid a Ptn for Final Distribution unless the estate 
> is truly insolvent & can't be made solvent, as that action is time 
> consuming & expensive.  It's just a lot simpler & cheaper to get 
> Nonint Powers if there's any way to make the estate solvent.  For 
> example, I've written claimants telling them they will get little or 
> nothing if the estate remains insolvent & asking them to release their 
> claim or settle it for pennies so the estate can become solvent & 
> Nonint Powers may be obtained, so the estate may be closed cheaply & 
> efficiently.*
>
> On 11/19/2014 2:20 PM, Krista MacLaren wrote:
>> Hi Listmates:
>> I have what was considered an insolvent estate upon opening the 
>> probate.  The creditor claim period has now passed, and many 
>> creditors did not file claims (although actual notice was given to 
>> all), so there may be some money left over for the sole heir.  I am 
>> trying to decide if it is better to go ahead and accept the few filed 
>> claims and pay them, and perhaps send a rejection to a debt 
>> collection agency that failed to file a claim but sent demand letters 
>> during the claim period, and then file a verified final report and 
>> petition for distribution and closing, OR to wait to accept or pay 
>> claims, file a verified report and petition asking the court to 
>> approve payment of the claims, approve rejection/ignoring of any 
>> other creditors (who failed to file claims), payment of attorney 
>> fees, funeral expenses, etc., and discharge of PR after paying creditors.
>> Suggestions?
>> Thanks so much!
>> Krista
>>
>>
>> Krista J. MacLaren
>> Attorney at Law
>> Northgate Executive Center II
>> 9725 3rd Ave NE, Suite 600
>> Seattle, WA 98115
>> (206)523-6116
>> kjm.inc at mac.com <mailto:kjm.inc at mac.com>
>>
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>>
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