[WSBAPT] Closing Estate in Under 6 Months

Tue May 26 15:04:43 PDT 2015

Eric:

Thanks for your prompt reply.  We have a good handle on the debts and taxes
due to the lengthy history following death.  Just couldn’t recall if WA
statutes prohibited closing prior to 6 months regardless of whether Notice
to Creditors or publication were needed.

Sincerely,

*Chris J. Moore*
Christopher J. Moore, JD, CPA, AEP®, EPLS*
Creason, Moore, Dokken & Geidl, PLLC
Lawyers
1219 Idaho Street, POB 835
Lewiston, Idaho 83501-0835
Phone: 208-743-1516; Fax: 208-746-2231
Website: www.cmd-law.com

*Certified as an Estate Planning Law Specialist by the Estate Law
Specialist Board, Inc., the only estate planning certification entity
approved by both the American Bar Association and the Idaho State Bar
Association.
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*From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *Eric Nelsen
*Sent:* Tuesday, May 26, 2015 2:21 PM
*To:* WSBA Probate & Trust Listserv
*Subject:* Re: [WSBAPT] Closing Estate in Under 6 Months

I think it's usually okay, but the 2-year S/L on creditors only works
against state debts, not federal. Beware:

1. Federal debts--decedent's income tax, estate's fiduciary post-death
income taxes, for all years but especially to report the sale of the house
and determine capital gain on the 10 year interval

2. Medicaid recovery liens (probably not an issue here since that's usually
a lien on the real estate)

Since you have 10 years' worth of post-death knowledge, the risks may be
fairly low so long as (1) decedent's final 1040 was filed, and (2) PR files
a 1041 to report and issue K-1s for any capital gain on the sale of the
house. But, the whole thing should be discussed with the PR to see if s/he
knows of any possible debt.

Re the federal debts, the PR ends up personally responsible if they're not
handled, so it's strongly in PR's best interest to make sure before
distributing and closing.

Under federal law, S/L on decedent's income tax is 3 years after filing of
any return, *but no S/L applies to any tax year for which no return was
filed*.

Sincerely,

Eric

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1320 University St

Seattle WA  98101-2837

phone 206-625-0092

fax 206-625-9040

*From:* wsbapt-bounces at lists.wsbarppt.com [
mailto:wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>]
*On Behalf Of *Chris Moore
*Sent:* Tuesday, May 26, 2015 1:59 PM
*To:* WSBA Probate & Trust Listserv
*Subject:* [WSBAPT] Closing Estate in Under 6 Months

I represent the PR of an estate where the decedent died 10 or more years
ago.  The only asset is a home that was used by both the decedent and a
child as their primary residence.  Child continued to reside in home after
decedent’s death.  Home was owned solely by decedent.  Now that child has
died, a probate was begun to get a PR appointed to fix up and sell the
residence.  The residence sold fairly quickly, so we now have only cash in
the estate.

Since the 2 year statute of limitations passed years ago, is there any
need/requirement to hold the estate open for 6 months?  The surviving
siblings and issue would like to receive their distribution sooner rather
than later.  Before I start my research I wondered if anyone had dealt with
this fact pattern before.

Sincerely,

*Chris J. Moore*
Christopher J. Moore, JD, CPA, AEP®, EPLS*
Creason, Moore, Dokken & Geidl, PLLC
Lawyers
1219 Idaho Street, POB 835
Lewiston, Idaho 83501-0835
Phone: 208-743-1516; Fax: 208-746-2231
Website: www.cmd-law.com

*Certified as an Estate Planning Law Specialist by the Estate Law
Specialist Board, Inc., the only estate planning certification entity
approved by both the American Bar Association and the Idaho State Bar
Association.
_______________________________________________
*-- Note -- *The information contained in this e-mail transmission is
confidential and may also be a legally privileged communication. This
information is intended for the exclusive and private use of the
addressee(s). If you are not the intended recipient, you are hereby
notified that any use, disclosure, dissemination, distribution (other than
to the addressee(s)), copying or taking any action because of this
information is strictly prohibited. If you have received this e-mail in
error, please notify the sender immediately. Thank you.
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