[WSBAPT] Family Allowance Help

[Paul Neumiller]

Jane, thank you for so generously sharing your information.  I appreciate it greatly.  And you have predicted correctly, the parents have already lawyered up.


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jane Bitz
Sent: Thursday, June 14, 2018 4:12 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Family Allowance Help

Paul,
I have done a couple of spousal award petitions. I have done them while the probate is pending, but after the creditor claim period has expired.  I am attaching the info from my file. The Law of Spousal Support doc was cribbed directly off of the old Washington probate site, but the research should be updated to be sure the RCW cites & caselaw are still good.

Most of the creditors that have “lost out” in my probates have been unsecured credit cards. One was an under secured debt for a motor home where the surviving spouse was not able to continue making the $600/mo payments on a vehicle that she couldn’t even drive. It was repossessed and there was a claim for $22,000 in a deficiency that the Court had no problem wiping out with the Spousal Award. She also received life insurance, which we disclosed to the Court, but asked for an award that was equal to all the marital property in the probate. I have never had a creditor show up to the hearing on the Award.

In your situation, I would document the surviving spouse’s situation in detail in the Petition, including the amount of income he has lost because of his spouse’s death. I would list the  parents’ creditor claim as an unsecured debt. It may be a hard sell to the Court because of the parties relationships. I would anticipate that the parents will probably retain counsel and show up at the hearing on the Spousal Award petition.
Jane Bitz.


Jane G Bitz
Of Counsel
Wolff, Hislop & Crockett, PLLC
12209 E Mission, Suite 5
Spokane Valley WA 99206-4824
(509) 927-9700; FAX (509) 777-1800
jbitz at whc-attorneys.com<mailto:jane at jbitzlaw.com>
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Paul Neumiller
Sent: Thursday, June 14, 2018 3:18 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Family Allowance Help

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<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto: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<mailto: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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