[WSBAPT] Questions Regarding Insolvent Testate Probate

[Heather deVrieze]

This doesn’t help with the sale of property within the claim period, but I have been able to make estates solvent by getting creditors to voluntarily reduce their claims.

A letter to them (with the notice of possible insolvency) stating that the claims submitted to date appear to exceed the value of the estate, the extra costs and time to resolve if the estate isn’t “solvent” and suggesting a reduction (generally a percentage) of their claim that would leave the estate with enough funds to pay expenses and claims and keep something small for their trouble.

Why does said Personal Representative want to sell? Is this a transaction with a related party, a deal that was agreed to while decedent was still living?

Heather

Heather S. de Vrieze
Attorney-at-Law
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John McCrady
Sent: Tuesday, December 11, 2018 8:49 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Questions Regarding Insolvent Testate Probate

As far as I know the PR needs to obtain Non-Intervention powers (11.68.011) in order to sell the real estate without a court order.  Solvency is a condition precedent to obtaining Non-intervention powers.
In the absence of Non-intervention powers, the PR will need to follow the rather onerous procedures set forth in 11.56 in order to sell the real estate.
I would be interested in hearing if someone is aware of another alternative.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.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 John Yip
Sent: Monday, December 10, 2018 6:48 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Questions Regarding Insolvent Testate Probate

Hello,

Hypothetically, suppose I have a client who has an insolvent testate estate that consists of a house as its sole asset.  The estate wishes to sell the house now (so the usual "wait 2 years for statute of limitations to run" advice does not apply here).  Problem is, nobody can act on behalf of the estate (most notably in signing the deed) until someone is appointed personal representative.

What's the quickest and most efficient way to have the PR named in the Will be appointed as PR and be able to close on the house sale right away?  Can I add language about selling the house in the Petition for the initial hearing?  Do I need to give notice to known creditors of the initial hearing where the PR will be appointed?

Also, it would be very helpful if someone could send me forms for starting the probate of an insolvent testate estate.

Thanks.

John
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