[WSBAPT] Spousal Award in Lieu of Homestead

Diane J. Kiepe DJKiepe at depdslaw.com
Thu Jun 27 14:09:22 PDT 2019


Dalynne,

I think your thoughts and approach below are very well thought out but I would say that I have had a similar experience and was saved from filing.  What I did was call each unsecured creditor and offered about ¼-1/3 payment on each account.  I explained that if I could not work out a group settlement that I would have to file for family allowance and the money could either go towards legal fees or to them  Some just wrote off their bills without further questions, some requested an inventory (which I provided) and u ltimately accepted and some accepted as proposed without additional information.  It took some phone call time and then a letter writing but we avoided having to file, serve, etc. etc.  I had no objections by the way.

Just some food for thought.

Best to you,

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Thursday, June 27, 2019 1:35 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Spousal Award in Lieu of Homestead

I have a new client just came in and her husband died a few months ago leaving $70k in debt.  They own a home in Snohomish worth $270,800, community property, no mortgage.  However, there appears to be $70,000 in unsecured debt credit cards the wife was really unaware of... husband took care of finances.  Also another loan with Chase for $18,000 in 1995 that she is still getting information on - Chase is telling her the home was used as security but she had no idea about that.  They also own land in Port Townsend that she wants to sell worth approximately $8800, community property as well.  She was left with less than $10,000 and $1600 month income in social security.  Nothing else.

Seems the best way to help her is to file for a spousal award in lieu of homestead.  I have some samples of pleadings so will be doing the docs after appointment.
Husband's half of community property interest in the home in Snohomish would be $135,400 and with $88,000 in debt, the homestead would be $125,000.
I found information online from http://probate-litigation.com/C-Rights-Specific-Individuals.htm and will update cites and review RCW.

The major benefit of receiving property as a family award is that, with few exceptions, it takes priority over all gifts, taxes, and claims in the estate, for example, all debts, including judgments and judgment liens, of the Decedent and the surviving spouse occurring at the Decedent's death.  RCW 11.54.070

Thanks for any insight you can provide to assist me in applying for the spousal award after I have her appointed PR of the estate.
I will be in Snohomish.

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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