[WSBAPT] creditor SOL

Tue Jan 24 10:48:00 PST 2017

Thanks, Doug.  I am curious about the practical effect of this for Medicaid liens.  Are they truly liens before filing? Are they subject to 4 month or other time limitation?  Mostly I don’t see the state trying to collect them, even though they get special notices.

Roger Hawkes, WSBA 5173
19909 Ballinger Way NE
Shoreline, WA 98155
www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
206 367 5000 voice
206 367 4005  fax

From: Doug Lawrence [mailto:Doug.Lawrence at stokeslaw.com]
Sent: Tuesday, January 24, 2017 9:27 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] creditor SOL

Hi all:

The general statute (4.16.160) says statutes of limitation do not bar the state from bringing an action if the action is brought for the benefit of the state, But the nonclaim statute of 11.40 nonetheless applies.  Here are some headnotes on this issue:

Nonclaim statutes are judicially created exception to rule of state immunity from operation of limitation periods.  Bellevue School Dist. No. 405 v. Brazier Const. Co. (1984) 103 Wash.2d 111, 691 P.2d 178<https://1.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1984155788&pubNum=0000661&originatingDoc=NDE4F4CB09D7E11DA82A9861CF4CA18AB&refType=RP&originationContext=notesOfDecisions&contextData=%28sc.DocLink%29&transitionType=NotesOfDecisionItem>.  Limitation Of Actions [Key Number]  11(1)<https://1.next.westlaw.com/Browse/Home/KeyNumber/241k11(1)/View.html?docGuid=NDE4F4CB09D7E11DA82A9861CF4CA18AB&originationContext=notesOfDecisions&contextData=%28sc.DocLink%29&transitionType=NotesOfDecisionItem>

This statute, which exempts state from operation of general statutes of limitation, does not relieve state from effect of § 11.40.010<https://1.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000259&cite=WAST11.40.010&originatingDoc=NDE4F4CB09D7E11DA82A9861CF4CA18AB&refType=LQ&originationContext=notesOfDecisions&contextData=%28sc.DocLink%29&transitionType=NotesOfDecisionItem>, which bars claims against estate when creditor fails to present them within four months.  In re Guardianship of Mayou (1972) 6 Wash.App. 345, 492 P.2d 1047<https://1.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1972122618&pubNum=0000661&originatingDoc=NDE4F4CB09D7E11DA82A9861CF4CA18AB&refType=RP&originationContext=notesOfDecisions&contextData=%28sc.DocLink%29&transitionType=NotesOfDecisionItem>.

Statute of nonclaim (see, now, § 11.40.010<https://1.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000259&cite=WAST11.40.010&originatingDoc=NDE4F4CB09D7E11DA82A9861CF4CA18AB&refType=LQ&originationContext=notesOfDecisions&contextData=%28sc.DocLink%29&transitionType=NotesOfDecisionItem>) applies to all claims including claims by state;  and claim by state against estate of insane decedent for sum due for support and maintenance is barred when not timely filed.  In re Rhodes (1938) 196 Wash. 618, 83 P.2d 896<https://1.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1938105129&pubNum=0000661&originatingDoc=NDE4F4CB09D7E11DA82A9861CF4CA18AB&refType=RP&originationContext=notesOfDecisions&contextData=%28sc.DocLink%29&transitionType=NotesOfDecisionItem>.

Statute of nonclaim applies to claim held by state, notwithstanding provision of this statute that there shall be no limitation to actions brought in name or for benefit of state.  State v. Evans (1927) 143 Wash. 449, 255 P. 1035<https://1.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1927104950&pubNum=0000660&originatingDoc=NDE4F4CB09D7E11DA82A9861CF4CA18AB&refType=RP&originationContext=notesOfDecisions&contextData=%28sc.DocLink%29&transitionType=NotesOfDecisionItem>.

Cheers!

________________________________________________________
Douglas C. Lawrence (v-card<http://www.stokeslaw.com/profile/attorneys/douglas-c-lawrence/vcard> | bio<http://www.stokeslaw.com/profile/attorneys/douglas-c-lawrence>)
Shareholder
Stokes Lawrence, P.S. - Realizing your vision.
1420 Fifth Avenue, Suite 3000 | Seattle, WA 98101-2393
Tel.: (206) 626-6000 | Fax: (206) 464-1496
Email: doug.lawrence at stokeslaw.com<mailto:doug.lawrence at stokeslaw.com> | Web: www.stokeslaw.com<http://www.stokeslaw.com>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Tuesday, January 24, 2017 8:53 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] creditor SOL

Paul--There was discussion about this specifically regarding Medicaid a while back on the listserv. I think I might've even started the conversation. If I remember correctly, a couple of our regular commoners said that they had had no trouble asserting the two-year bar against DSHS for a claim on Medicaid recovery. I think the logic was that even though it was federal money going to the State that was used to pay Medicaid (and the Feds can ignore our S/L), the State process for obtaining reimbursement is subject to the state statutes and therefore is subject to the two-year bar.

However, I would suggest that you look at the applicable WACs and also I think there is a DSHS manual regarding Medicaid recovery process that is available online.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Grant
Sent: Monday, January 23, 2017 4:31 PM
To: Probate & Trust Listserv
Subject: [WSBAPT] creditor SOL

Is the state under the same 2 year rule for creditors if an estate never went to probate but had a piece of property?  Decedent was on medicaid and I'm concerned with the SOL for any state recapture ability.

Thanks,

Paul H. Grant - JD, LL.M

Planning with Purpose, Inc
Lynnwood, WA 98036
425-939-9948
www.planningwithpurposeinc.com<http://www.planningwithpurposeinc.com>

Estate Planning. Business Planning. Wealth Succession.
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