[WSBAPT] PR Authority to Abandon Property

[Rob Wilson-Hoss]

There have been several discussions about this over the years on the listserve. Ideally, if there is a bank loan, the bank would take a deed in lieu, but banks, especially large national banks, have much difficulty with such concepts. And when they do even manage to address these situations, they always seem to want an indemnification from the PR, which no PR would ever give, at least in the forms that I have seen offered. In addition, there is the possibility of assets in the estate that the bank might want to take a look at, although practically that is not very likely. Various strategies include protecting money through family awards, protecting the estate from anything other than executing on its security (excess judgment) by virtue of the claims bar of the probate statutes, and so on. 

 

Once a PR has distributed everything and paid everything and the bank can't get at any of the other assets, and there is nothing left to do but deal with this one asset with no equity, why wouldn't the PR just resign? If the bank won't take a deed in lieu under those circumstances, then let the bank go through its foreclosure process. The PR has no continuing duty to act as PR forever. The heirs don't owe the debt personally. 

 

Rob

 

Robert D. Wilson-Hoss 
Hoss & Wilson-Hoss, LLP 
236 West Birch Street 
Shelton, WA 98584 
360 426-2999

www.hossandwilson-hoss.com
rob at hctc.com

 

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Wednesday, February 24, 2016 11:24 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] PR Authority to Abandon Property

 

I don't think there is statutory authority except under general powers in Ch. 11.48 RCW, to settle the estate as rapidly and quickly as possible "without sacrifice." Spending money to preserve an asset that is not worth the money spent would be, I believe, "sacrifice." I think this is the same general authority that allows donations of clothing, old furniture, etc. to Goodwill or other charity.

 

Strictly speaking, "abandoning" property is not quite allowed – I do think it needs to be disposed of in some way, whether it is taken to the dump or taken to a donation facility.

 

It is not possible to abandon real property, and the estate will remain liable if, for example, someone is injured on the property. I think a PR could simply pass the problem on to the heirs if, for example, the property value is upside down. It is not the ideal solution and there are several factors to consider in terms of dealing with the secured creditors, etc., but I think there is at least a scenario where the PR ends up not doing anything other than quit claiming the property to the heirs. 

 

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 Paul Grant
Sent: Wednesday, February 24, 2016 10:31 AM
To: Probate & Trust Listserv
Subject: [WSBAPT] PR Authority to Abandon Property

 

Is there any statutory authority to abandon property for a PR?  If the value is de minimus but the administrative cost would be far more than the value, can a PR abandon the property?  Does the thought change if it is real property versus personal?

 

Thanks for any thoughts.



Paul H. Grant - JD, LL.M

Planning with Purpose, Inc
Lynnwood, WA 98036
425-939-9948
www.planningwithpurposeinc.com

Estate Planning. Business Planning. Wealth Succession.

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