[WSBAPT] RCW 11.04.250 doesn't apply to leaseholds

[Eric Nelsen]

FYI y'all, I spent some time looking into whether or not a decedent's tenancy interest in a lease passes to heirs under RCW 11.04.250, the same way fee ownership would.

It appears not. Despite the fact that a lease is a "conveyance" of a real property interest, leaseholds of any length (even 999 years) are deemed "chattel real" and pass at death as personal property rather than real property. Right to control a leasehold passes to the personal representative in charge of the decedent's estate apparently, rather than to heirs automatically under RCW 11.04.250.

Cf. In re Barclay's Estate, 1 Wn.2d 82, 85, 95 P.2d 393 (1939) (classifying out-of-state mineral leases as "chattel real" or "immovable personal property" outside the taxing jurisdiction of Washington and so not included in the estate for purposes of determining inheritance tax). See also 49 Am.Jur.2d Landlord and Tenant Sec. 7 (1970), pp. 49-50.

The statute specifically says " When a person dies seized of lands, tenements or hereditaments, or any right thereto or entitled to any interest therein in fee or for the life of another..." which includes all fee interests including a life estate, and including a life estate pur autre vie. But not a lease for years.

Oh well. If someone has contrary authority, I would be happy to find it--

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

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