[WSBAPT] Trustee Liability for Mold Issues

[jeffrey winter]

Thank you, Mike and Heather, for your thoughts.  We do have a CMA that takes into account the mold issues, so we will start with that...


Jeff.



________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Mike Winslow <mike at winslegal.com>
Sent: Friday, March 11, 2016 12:25 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] Trustee Liability for Mold Issues


The client would do well to have a real estate agent give them a market analysis of the property as is, where is, with the risk of mold disclosed vs. the market value of an unimproved parcel. Then consider the cost of demolition in the valuation. That should meet any concerns about fiduciary duty to trust beneficiaries. Just run the numbers and see which way to maximize value.



If the value is greater without demolition, then disclose defects which are known in detail and require the buyer to have an inspection unless they will agree to state their intention to demo the building.

Seller should require Buyer to waive use of Form 17 as a condition of sale, and instead disclose the defects in the PSA by an addendum.  The situation is similar to sale out of probate, where Form 17 is not legally required (except as to enviro hazards).





Michael A. Winslow

1204 Cleveland Ave.

Mount Vernon, WA 98273

Ph. 360-336-3321

Em. Mike at winslegal.com



This message is from an attorney, so it's confidential. If you are not the intended recipient, it's too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.



From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of jeffrey winter
Sent: Thursday, March 10, 2016 2:43 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Trustee Liability for Mold Issues



Listmates:



I would be interested in hearing from anyone who has run into a similar situation and how they might have handled it...



My client is a successor trustee under a RLT.  Mom and dad are both gone now, and one of the assets is the home place on some acreage.  Unfortunately, the home is situated on a flood plain, and has in fact sustained flood damage several times.  In addition to that, recent inspections have uncovered what appears to be mold in certain areas of the house.



A dispute has arisen among the beneficiaries of the trust as to how best to dispose of the home place.  Some want to sell it outright.  The trustee (also a beneficiary) is concerned about liability arising from the mold.  Trustee's proposal is to raze the structure and sell the improved lot.  Siblings are saying that would be a breach of fiduciary duty.



Not being that familiar with mold liability in WA, would it be sufficient to avoid liability if the trustee disclosed the flooding and mold issues, or would we be better off going to court to get permission to raze the structure and sell the land?



Thank you for your thoughts....



Jeff Winter

Jeffrey D. Winter

Law Office of Jeffrey D. Winter, P.S.
604 North Main Street
Ellensburg, WA 98926
(509) 925-9600 tel.
(509) 925-9606 fax






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