[WSBAPT] Apparently insolvent estate

Mon Jul 27 12:02:46 PDT 2015

Make sure that your DSHS claim is for recoverable expenses.
I had an estate last year where the decedent was age 59.  He had been on
Apple care/Medicaid (the Obamacare expansion of Medicaid) in the year of
death solely for medical and hospitalization.
DSHS cannot recover for those medical expenses.  See WSR 14-02-076 Emergency
rule.
DSHS filed a creditor claim for $94,000.  It was all medical expenses. 
Client was never in a nursing home.
When I questioned it because they were all Medicaid-Apple care expenses,
DSHS withdrew the claim and the special notice.

DSHS told me last fall that they were in the process of reprogramming their
system to omit those medical items but at that point were still having to
reverse them manually.

Jackie Cyphers
Jeannette A. Cyphers, Attorney at Law
P. O. Box 908   
Edmonds, WA 98020-0908
425-776-5887
fax 425-640-0814
jacyphers at gmail.com

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-------Original Message-------

From: Lovie Bernardi
Date: 7/27/2015 11:52:17 AM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Apparently insolvent estate

Dear listmates,

I recently opened an intestate probate with limited assets that appeared
solvent at the time of filing. One asset, part ownership in a tavern
(actually shares of stock in the small corporation that owns the tavern),
has yet to be valued (we’ve just started negotiations for a buyout by the
other owner.) A car is up for sale on Craigslist. When I arrived at the
office this morning there was a large envelope from DSHS, a creditor’s claim
for $90,000 for medical bills paid out over several years, and a request for
special notice. The PR was unaware of this possible claim.

I realize I need to file a Notice of Apparent Insolvency and schedule a
hearing, with notice to heirs, unpaid creditors and those requesting special
notice.  What can be done in the meantime, pending the hearing? Can the PR
sell the car if she receives offers? The special notice statute requires
notice of petitions to sell assets of the estate, and under her
nonintervention powers would not have petitioned the court for the sale of
the car. Can we negotiate the sales price of the tavern and complete the
sale?  If anyone has a sample of something they’ve filed, that would be
appreciated. Thanks in advance for your help.

Lovie Bernardi
Attorney at Law
Seligmann & Flaherty, PLLC
216 First AVE S, #450
Seattle, WA  98104
(206) 682-2616

lovie at sbfirm.com
http://sbfirm.com

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