[WSBAPT] Closing Estate in Under 6 Months

[Eric Nelsen]

No, no such requirement that I know of. I know of estates being opened and closed inside of a week under extreme circumstances. I think the only deciding factor is whether the PR managed to meet all statutory duties during the time period, however long or short that might be.

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] On Behalf Of Chris Moore
Sent: Tuesday, May 26, 2015 3:05 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Closing Estate in Under 6 Months

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<http://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> [mailto: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> [mailto: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<http://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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