[WSBAPT] Probate Quandary

[Dalynne Singleton]

A lot will depend on whether you have non-intervention powers or not at this point.
The estate is solvent given the value of the assets/home v. creditor's claims which you appear to indicate are valid and will be accepted.  Is this creditor a CP creditor?
If the PR owns 50% of the CP asset and the decedent's 50% CP interest goes to the PR, the PR should issue a PR deed.  Any mortgage goes with the home secured.
The PR can issue a PR deed for the 50% CP interest making the PR 100% sole owner of property.
Then, the PR can, if they choose, to deal with the creditor and lien on the home - not sure if this creditor has a secured lien on the residence but it sounds that way.  The PR then takes the interest in the home with the lien attached.

Dalynne Singleton

Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street Box 13
PO Box 1091
Snohomish, WA 98291

360.568.5065
360.329.4079
360.568.8092  fax
dalynne at glgmail.com

LICENSED IN WASHINGTON AND OREGON
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-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Paul Neumiller
Sent: Thursday, November 21, 2019 4:29 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Probate Quandary

Listmates.  What to do.  What to do.  PR, as surviving spouse, inherited everything from spouse.  Here's the problem.  Outstanding creditor's claim is for a large amount but there is enough equity in the residence that if the PR is able to borrow against the residence, then PR would be able to pay off the creditor in full AND keep the house.  But the banks will not loan to an estate.  Even though if the residence were sold through Probate and the creditor would receive about 50 cents on the dollar (due to administration costs and family award/homestead rights), creditor is extremely uncooperative.  So, how does PR get the residence transferred into PR's name solely so PR can obtain a loan, pay off the creditor, and keep the house?