[WSBAPT] 2nd Try: is PR responsible for RE taxes

Tue Mar 15 08:10:07 PDT 2016

Nice answer, Rob.  I would also throw into the pile the idea that if the
land passes by specific bequest, taxes are owed by the person receiving the
land.  If it is part of the general residue, then the estate owes the taxes
until it is transferred out of the estate.  Also, if by specific bequest,
the party receiving it should also get any income accrued since date of
death minus costs (think rental property.)

On Mon, Mar 14, 2016 at 9:58 AM, Rob Wilson-Hoss <rob at hctc.com> wrote:

> Melinda,
>
>         RCW 11.04.250 says that title vests immediately in heirs, but it
> vests subject to the decedent's debts, family allowance, expenses of
> administration, and any other charges for which the real property is
> liable. So, title vests immediately upon death, but that title is subject
> to certain encumbrances that may or may not have become known or final as
> of date of death, sort of like any relation-back lien such as a reverse
> mortgage, home equity loan, contractors and crop liens, and so on. Some
> encumbrance amounts will be known, some probably won't.
>
>         But that raise an excellent point. Take for example family
> allowance/support awards under 11.54. They are specifically encumbrances on
> the real property under 11.04.250. They are supposed to be awarded "from
> the property of the decedent," community or separate. The award is to be
> treated like a general creditor of the estate, and assets for these
> purposes abate in order under 11.10.010 That doesn't necessarily answer the
> question, as the abatement statutes are about whether the property is
> intestate, residuary, general or specific, not whether it is real property
> that vests upon death. And you don't get to family allowance/support awards
> unless funeral expenses, last sickness expenses, and administrative
> expenses have been paid or provided for.
>
>         I am sure others will see things I don't, but to me, the property
> that vests as of date of death vests subject to certain encumbrances. It
> doesn't matter when the deed is recorded. But how those encumbrances are
> paid is the question. Real property taxes due prior to the date of death
> are in theory the responsibility of the estate, but if not paid, they
> follow the property as encumbrances. Real property taxes due after the date
> of death are still encumbrances against the real property, but until the
> estate deeds the property to the heirs, the taxes are the responsibility of
> the estate. The estate can pay the taxes out of the estate in order under
> 11.10.010, starting with intestate assets and then on to residuary gifts,
> then general then specific. Or the estate could deed the real property to
> the heirs. But if the estate deeds the real property to the heirs, without
> paying the taxes up to that point, then it comes along with an encumbrance
> for the total amount due.
>
>         Here, it is interesting that the Treasurer's office will not
> require real property taxes be paid current upon transfer by a Personal
> Representative, unless there is a manufactured home involved, or a boundary
> line adjustment sometime in the past. They have no readily-available
> citation for that position, although there may be one somewhere. So this
> can be an actual choice of the PR.
>
>         I suppose in your situation, you could have the PR deed out the
> real property, and if the Treasurer does not require that the taxes be paid
> upon the transfer, then the taxes are an encumbrance on the real property,
> not the estate, and the creditor's claim may not lie against the estate. I
> just did a quick look, and don't see that real property taxes can be
> collected except by tax sale (and not by a claim against the owner
> personally) , although I could be wrong on that. If that is the case, then
> the County's creditor's claim may not be such a great idea, especially
> given that it can always collect on its security without a creditor's claim
> under 11.40.135.
>
>         I would love to hear other thoughts or disagreements.
>
> Rob
>
> Robert D. Wilson-Hoss
> Hoss & Wilson-Hoss, LLP
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> -----Original Message-----
> From: wsbapt-bounces at lists.wsbarppt.com [mailto:
> wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Bryce Dille
> Sent: Saturday, March 12, 2016 11:34 AM
> To: WSBA Probate & Trust Listserv
> Subject: Re: [WSBAPT] 2nd Try: is PR responsible for RE taxes
>
> I'd take the position that taxes owing as of date of death was estate
> responsibility but any taxes due after date of death was responsibility of
> heirs receiving the same as a specific bequest the same as would be
> payments on mortgage encumbering the property.
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> Bryce H. Dille
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> -----Original Message-----
> From: wsbapt-bounces at lists.wsbarppt.com [mailto:
> wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Melinda
> Sent: Saturday, March 12, 2016 11:15 AM
> To: wsbapt at lists.wsbarppt.com
> Subject: [WSBAPT] 2nd Try: is PR responsible for RE taxes
>
> Mates:
>
> Creditors Claim filed by County Treasurer for prop taxes on RE in the
> Estate.  Claims refers to 2016 taxes.
>
> Probate opened 4 months ago (late 2015), property deeded to heirs now.
> Since the law states that ownership by heir essentially begins at death of
> testator, are the property taxes from Testator’s DOD the responsibility of
> the receiving heir?  Or the responsibility of the Estate until date of
> actual transfer deed?
>
> Misspelled from my iPhone
>
> Melinda
>
> Law Office of Melinda K Grout
> PO Box 1360
> Monroe, WA 98272
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