[WSBAPT] Family Allowance Help

[Paul Neumiller]

Randy and All, I am sorry for taking so long to respond but I am just coming up for air.

The SWD from parents state $180K as consideration and transfers the residence directly to Decedent, who was single at the time.  Decedent marries Surviving Spouse/Personal Representative.  Decedent’s Will leaves everything to surviving spouse.  There was no promissory note and no deed of trust but just a casual agreement to pay a certain amount of monthly payments.  In fact, a couple of years ago, the parties mutually agreed to lower the monthly payment as a result of reducing the agreed-upon interest rate.

Anyone know anything about how family allowances work or can point me to any materials?  Unfortunately, the WA Probate Deskbook just parrots the RCWs without much explanation.  The WA Lawyers Practice Manual gives a form for the petition but has no discussion.




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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Randolph Petgrave
Sent: Thursday, June 7, 2018 6:32 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Family Allowance Help

Paul,

How is the property titled right now? Is
It in the decedent’s name or still with the parents? If in the decedent’s name, how was it transferred (the excise tax statement should show if it was a sale or a gift).

I had this situation years ago - son and daughter in law bought property from mom - and for excise tax purposes the transfer was done as a gift. No promissory note, just monthly payments to mom. When son died before the property was paid off, daughter in law leveraged the “gift” aspect against mom to negotiate a reduction in the remaining debt. I represented mom so there was no issue of family allowance.

Just a thought.

Randy
Sent from my iPhone

On Jun 4, 2018, at 5:23 PM, Paul Neumiller <pneumiller at hotmail.com<mailto:pneumiller at hotmail.com>> wrote:

Listserv Mates:  I have read a few materials and RCW Chapter 11.54 and I remain unclear as to the concept of a family allowance.    Chapter 11.54 implies that a family allowance is used only during the probate (“claimant’s present and reasonably anticipated future needs during the pendency of any probate proceedings”).

So here’s my situation.  I represent surviving spouse of a fairly new probate.  About ten years ago, Decedent, as a single person, bought a house from her parents with only a portion down and WITH NO promissory note or deed of trust.  That’s right:  no note and unsecured.  Decedent marries SS/PR and they continue to make monthly payments to Decedent’s parents. Decedent dies and leaves everything (including house) to SS/PR in Will. SS/PR continues to make monthly payments during probate.   OK, we sent a notice to creditors to parents and parents submitted a Creditor’s Claim for the loan (properly filed).  House assesses for about $190K and parent’s loan is about $155K.  SS/PR is a salt-of-the-earth construction worker type of guy who doesn’t earn much money.   Scant other assets.  A life insurance policy of $60K was used mainly for funeral expenses and medical bills.  SS/PR does not deny the existence of the loan but desires to reduce/eliminate it.  Can SS/PR petition the court to wipe out all or a portion of the parent’s loan?   How does this work with an unsecured loan that is due over time?   Also, I cribbed off of this listserv a form for a request for family allowance and it prays for the allowance AND to close the probate.  So, are family allowances requested at the end of a probate?






<Paul A Neumiller.vcf>
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