[WSBAPT] Insolvent estate - not sure

[Dalynne Singleton]

I have opened a new intestate probate and have a hearing tomorrow in Snohomish, having provided notice to heirs.  I am asking that the Administrator to be appointed in the granddaughter as none of the 3 daughters want anything to do with the estate.  The only asset is the home and real property which is in disarray.  A foreclosure hearing is set for 1/10/19 and the granddaughter is interested in working with the mortgage company, who seems agreeable, to getting a short sale.

I have researched RCW 11.68.080 and insolvency.  Although I am assuming because of the current condition, the home is not worth what the current mortgage owed is, is the estate insolvent because of this knowledge?  My reading of the statutes have not provided me with this conclusion and until an actual claim is made against the estate by the mortgage holder, is the estate solvent?  Due to the foreclosure hearing on 1/10/19, we want to provide Letters to the administrator after tomorrow's hearing.  We would prefer non-intervention powers but I don't think it is a deal breaker.

Although some have expressed the opinion on the listserve that it is mandatory to have full intervention powers with insolvent estates, I don't read the statutes to be this clear.  In King County, the probate manual states:


Solvency - an Absolute Requirement for Nonintervention Powers:  To obtain Nonintervention Powers, the estate must be solvent, that is, it must have "more assets than debts and expenses."  King County, for example, defines solvency as "the value of Decedent's probate assets and nonprobate assets exceeds the anticipated amount of Decedent's debts and the costs of administration."  2003 King County Probate Policy & Procedure Manual, § 4.2.

I have opened estates which were solvent, received creditor's claims for more than the assets and gone back to court to declare insolvent estate.  The statute that allows for this clearly states the non-intervention powers can be reaffirmed, rescinded or restricted.  The Pierce County Commissioner was surprised to learn this and left the non-intervention powers in place.  Why would the initial opening of the estate be any more restrictive on the non-intervention powers?

I'd like to hear if anyone has obtained non-intervention powers when an estate has as its only asset the home/real property and a mortgage with foreclosure in process?

Dalynne Singleton

Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.329.4079
360.568.8092  fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>

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