[WSBAPT] 11.18.200 - liability of nonprobate assets for estate debts, admin, and taxes

[Mark Mullins]

Dear Listmates:

  1.  I had a nominated oldest adult child PR call me for help with a single parent death with the estate left to largely be transferred as nonprobate assets, but where estate and transfer taxes may be due because of the size of the estate (over $2.2kk).
  2.  I thought I had once seen a statute for notice to entities holding non-probate assets advising them of the liability of such assets for estate administration, debts, and estate tax liabilities.
  3.   From my research today, I think that is (no longer) true, if it ever was.
  4.  All I find is RCW 11.18.200 listing non-probate assets, the beneficiary(ies) of which, are liable for such costs from such assets.
  5.  I had also thought there was some kind of time frame provided by statute for notice to entities holding such assets, after which such entities would have no liability for distribution to the named beneficiary (under survivorship, POD, or TOD).
  6.  Am I wrong about #1?
  7.  Am I wrong about #2?
  8.  Am I wrong about #3?
  9.  Am I wrong about #5?
  10. Is there a simple way to keep the horse (relevant non-probate asset) in the barn (the hands of an entity holding it before transfer to the named survivor or beneficiary or the survivor/beneficiary him/herself who already got it)?
  11. (a) Other than withholding or reducing a beneficiary/transferee's distribution share for the appropriate amount (if there is enough in such share), (b) can you avoid estate liability for the amount for which the nonprobate asset should be subject by directing the taxing authority or other creditor to the entity or beneficiary of the nonprobate asset?
  12. Since I doubt #11 (b) is at all practicable, if even possible, this seems a massive hole in the justice of the overall legal structure for disposition of a decedent's estate.  Am I wrong?
  13. I would welcome any form notices and letters people have found effective in addressing or resolving this problem, especially a notice meeting the requirements of 11.18.200(1) and 11.96A. The notice draft I've come up with is substantially a restatement of most of 11.18.200(1) and (2), and if that is what you use, I am probably already set on that issue.

Sincerely,

Mark D. Mullins
Attorney at Law


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MARK D. MULLINS
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