[WSBAPT] Rule of Thumb for Distribution Disparity?

[Eric Nelsen]

I'm with Heather. These are essentially agreed sales from Estate to a specific heir, at a set price agreed upon by all heirs, with credit toward the purchase price for the heir's interest in the estate. There will be excise tax owing for the amount paid by the heir, title insurance would be smart for the buyer, easiest to have escrow handle the transaction--it all points to doing this as purchase and sale agreements. That also achieves the concrete timeframe for getting the cash together--and ensures there's no transfer of property until the amount is paid to the Estate.

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] On Behalf Of Heather deVrieze
Sent: Tuesday, February 27, 2018 8:45 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Rule of Thumb for Distribution Disparity?

Why not structure it as a sale to the heir, at least a sale for the $65,000 that isn’t the inheritance. The estate, or the other heirs could set closing out far enough that the recipient could get their money together, get a loan, or otherwise, or could simply take back a note and deed of trust at closing, with a balloon payment due down the road.

Heather

Heather S. de Vrieze
Attorney-at-Law
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Brent Williams-Ruth
Sent: Tuesday, February 27, 2018 7:57 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Rule of Thumb for Distribution Disparity?

One of my probate matters involves two pieces of real property but three heirs. The heirs have agreed, in principle, that each property will pass to one heir and they will pay the estate back for the excess over their share.  The oldest heir and executor is concerned that the younger sibling will not pay what she owes back to the estate (share of estate is $150k, this particular house is worth $215k - thus heir will need to pay Estate $65k)

My question - is there a standard time by which someone should pay back the estate before the Executor can reasonably say they are simply dragging out the process and decide to sell and distribute the proceeds? I was looking through the RCW and did not see any guidance for a situation like this.

Appreciate the feedback as we want to be fair to the heirs that knew they were going to be writing checks back to the Estate, but also to keep the process moving forward if they cannot come up with the funds and we need to list the property for sale.

Thank you,
Brent

--

Brent Williams-Ruth
Founding Member

BWR Consulting, PLLC

Phone: (425) 830-5134

e-mail<mailto:brent at bwrconsults.com> / website<http://www.bwrconsults.com> / facebook<http://www.facebook.com/bwrconsults>
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