[WSBAPT] Non-probate payment to heirs

[J Richard McEntee, Jr.]

Hello - 

I am hoping to get some guidance on a situation with a potential client. PC and girlfriend purchased a home together. She had no credit so could not obtain a loan. PC obtained loan and together PC and girlfriend made the downpayment. Home was titled in PC’s name. PC and girlfriend spent equal amounts to remodel and upgrade the home. Their verbal agreement was that they would be equal owners/partners in the home. 

Ultimately, girlfriend’s drug addicted son moved into the home with PC and girlfriend. Son was to get treatment. He never received treatment and did not move out. This caused the demise of the couple’s relationship.

Shortly after the relationship ended, girlfriend became terminally ill. She reached out to PC for help and he provided assistance to now ex-girlfriend. After a short period of time girlfriend passed away. She had no will and no real assets but for a life insurance policy that paid to her two children. No probate or administration was filed.

Subsequently, PC sold the home (last November) at a net profit of about 250K. PC has been in discussion with girlfriend’s daughter to pay girlfriend’s share to her two children, less some expenses paid by PC related to girlfriend’s last illness. The son is still heavily drug addicted. The daughter and PC have agreed to what would be a fair settlement of the matter. It is in the neighborhood of 50K to each child.

My key questions are should this be settled via a probate proceeding? In light of this situation, would probate protect the PC? Or since the children are the only heirs can PC simply pay the money to the children in exchange for settlement and releases? If so, are their key provisions that should be included in the releases?  i.e. that children agree to hold PC harmless from any unknown claims against the mother? 

Thank you in advance for your thoughts and advice.

Rich


RICH McENTEE
McENTEE LAW OFFICE
3800 Bridgeport Way W, Ste A411
University Place, WA 98466
253.227.9894(m)
jrmcentee at gmail.com       

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