[WSBAPT] Small Estates Affidavit Questions

[Douglas Bratt]

Eric:

Thanks so much for your thoughts.

I agree with your analysis.

So often, we are dealing with only family members, and it seems much cleaner to have just one Claiming Successor to collect all of the insurance proceeds, or the contents of a bank account, and then to make distribution to the family members, as opposed to possibly leaving a percentage with the depository or the insurance company.  And, if the remaining portion of the fund goes unclaimed, and is turned over to the Dept of Revenue, the only info the depository would have is that it was an asset in the name of the Decedent, and it might forever be impossible for the potential recipient to trace where the funds have gone.

Maybe that is why such recipients should pay attention to envelopes that come in the mail to them, perhaps asking them to give written authorization for the collection of their share of such assets by the Claiming Successor.

And, one Affidavit of Claiming Successor is considerably cheaper than having five different such documents prepared, one for each recipient, including (as in my case) three charities, sharing a mere 7% of a $75,000.00 account.  Two of those charities get only 1% (or $750.00) and it makes more sense that the total fund be collected and distributed from my trust account, or the individual charities receiving mere 1% shares might be out $300.00 to $500.00, to be able to collect their individual $750.00 shares of the account.  Besides this, there will have to be separate $20 Death Certificates obtained by each of the five individual "claiming successors," if all is not dealt with by having only one Claiming Successor, working on behalf of all of the Successors.

But, that brings up an interesting point.  If a potential recipient wants (or needs) to make claim for his/her/its share of an account (perhaps because he/she/it ignored the mailing from a person trying to collect for all of the successors), how is he/she/it supposed to know that the facts set out in subsections (b) through (g) are true or not, and how can that recipient be in a position to swear, in an Affidavit, what the (b) through (g) facts are?  This is info that would ordinarily only be available to the person named as PR in the original Will.

That is why it seems to me that it would be much cleaner to have only the one Claiming Successor, hopefully having obtained written authorization from all of the other Successors.

And, horror of horror situations:  Among other things, Subsection 3 appears to cover a situation for the issuance of a new Certificate of Title to an auto, for instance.  What happens if the Claiming Successor is only entitled to 50% of an auto?  How does the DOL issue that Certificate of Title?  One can imagine a scenario where formal probate, and the attendant costs, might be the only way to deal with such issues if an essentially indivisible asset cannot practically be re-titled if it would result in fractional ownership interests in the personal property asset.

Thanks again, Eric.

Best Regards,

Doug Bratt


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Monday, April 02, 2018 5:13 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Small Estates Affidavit Questions

I read RCW 11.62.010(2)(i) in tandem with the part of RCW 11.62.010(1) that says, "...or so much of [the property] as is claimed..." So, if my client is entitled to one-fourth of the account, I make the claim for only one-fourth, and give notice to the other successors.

In your scenario, if my client is going to collect the entire account for themselves and other successors, then I have the other successors sign something confirming that they agree that my client can act as their agent for purposes of receiving their share of funds and redistributing it. (And, as my client is not bonded in this situation, I typically draft the Affidavit to make sure that any money is payable to my trust account so I can make sure no funds go astray.) I might include an indemnity provision to protect the client.

If there is a black sheep successor who will not cooperate or cannot be found, then I leave their share with the property holder and only do the Affidavit as to the cooperating successors. My thought is, if the black sheep does not want her/his money, then my client does not want the headache of ending up as custodian for it.

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

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Douglas Bratt
Sent: Monday, April 02, 2018 3:17 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Small Estates Affidavit Questions

Listmates:

I have a question regarding the requirements of RCW 11.62.010, the Small Estates Affidavit Statute.

It appears that when one signs a Small Estate Affidavit, there is a requirement in RCW 11.62.010(i) that the Claiming Successor has obtained "written authority" of "all other successors" to take full payment or delivery" of the account in question.  However, what then is the purpose of giving ten (10) days' notice to the other successors [per RCW 11.62.010 (h)], if there cannot be a taking of the entire account without securing written authority of all other successors [per RCW 11.62.010(i)]? Additionally, nothing in that sub-section states what a recipient of such notice can do in response to such notice.

In my case, there are two major recipients due to receive the account proceeds (one of whom will be signing the Affidavit as the Claiming Successor.  This person was also designated PR in the Decedent's Will.), constituting 93% of the account.  Three charitable organizations are to receive the other 7%.

My intention was to let the Claiming Successor secure the entire account proceeds, place all funds in my trust account, and to then distribute trust account checks to the two major recipients, and three small trust account checks to the three charities, in the appropriate percentages.

Or, do I have to get written authority of all four of the other successors, before I can arrange for my "Claiming Successor" client to claim the entire account, for all five recipients.  What if I am unable to get one such signature?  (This would be an acute problem if one of the recipients was a black sheep member of the family who had not been seen or heard from for 25 years.)

Any thoughts?  Or, how about a two-by-four to my head if I am simply miss-reading the sub-paragraphs in question?

Thanks for any responses.

Best Regards,

Doug Bratt


Douglas J. Bratt
Lawyer

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