[WSBAPT] Oregon vs Washington Nonprofit Shares

[Tara]

Husband and Wife are and have always been residents of Oregon.  H&W own
rural real estate in Washington.  H&W bought a Share in a Washington
Nonprofit Association that provides water service to the WA real property.
Both husband and wife have died, not simultaneously, leaving mirror wills
that provided 100% to surviving spouse, then equally between adult kids.
There are concurrent probates open in Oregon and in Washington.  We are
trying figure out whether the water share is includable in the Oregon
probate estate accounting for the first spouse to die, and whether transfer
of ownership needs to be done by the Oregon or the Washington executors -
who are the same actual people, but with Letters issued by differing courts
and different attorneys for each state matter.

 

Leaving aside the community property issues, since this is an Oregon couple,
Washington recognizes ownership either as: 1) tenants in common or 2) joint
tenants with right of survivorship (if expressly declared on the deed or
other title document).

 

As I understand it, Oregon also has tenants in common, joint tenants (also
required to be expressly declared), and tenancy by the entirety.  Tenancy by
the entirety provides for an automatic right of survivorship for the
surviving spouse, and is presumed when married couples take title together
and don't expressly provide that ownership is taken "as tenants in common."
Can title to personal property be taken as tenancy by the entirety?  I
believe it only apply to real estate interests?

 

Title in the water share was taken as plain-vanilla just in names of the
spouses "John Doe and Jane Doe" only.  No mention of "as husband and wife"
or "as joint tenants" or "as tenant by the entirety" or "as tenants in
common" on the ownership documents.

 

Ownership of WA real estate within the boundaries of the water district is a
prerequisite to being approved to acquire a water share.  However, the water
share itself should be an intangible personal property right, not real
estate.  So, I'm thinking that choice of law and control over the
administration of the asset puts the water share in Oregon determining
ownership interests of the first-to-die spouse and the second-to-die spouse,
jurisdiction of the probate over the asset, and inheritance procedure for
transfer - not Washington.

 

If tenancy by the entirety isn't allowed or presumed for the intangible
personal property, then it seems the water share should be owned by H&W as
tenants in common with 50% owned by the first spouse's estate, included on
the Oregon accounting and inventory.  Not the Washington Inventory.  And
ultimately transferred by the Oregon executors.

 

Am I analyzing this cross-border issue correctly?

This one is starting to sound something like a bar exam question.

 

Tara M. Roberts

Puget Sound Law pllc

roberts at pugetsoundlaw.com

 

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