[WSBAPT] paying debts/closing insolvent estate

[Richard Wills]

On 11/21/2014 12:45 PM, Krista MacLaren wrote:
> Thank you to everyone for your responses.  Richard, if I take that 
> approach, am I correct that I don't have to give notice to the 
> creditors of the hearing for non-intervention powers unless they 
> requested special notice with their creditor claim?  In this case, 
> that would mean no one receives notice because my client is the only 
> heir, and no one has requested special notice.
*
**That has been my practice, so in your case, you should simply be able 
to walk the Ptn for NP through ex parte with no noticed hearing.* *RCW 
11.28.240(1)(b) <http://apps.leg.wa.gov/rcw/default.aspx?cite=11.28.240>*.


>
> Krista
> On Nov 20, 2014, at 8:56 AM, Richard Wills wrote:
>
>> *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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