[WSBAPT] Probate Quandary

[Eric Nelsen]

I'd suggest: Get a court order authorizing distribution to the spouse, subject to the spouse's promise (enforced by court's order and subject to contempt) that spouse will take personal liability for the creditor claim and will immediately apply for refinance in order to pay it. Give the creditor notice of the hearing so they can't whine. I think the legal argument is simple equity, and the probate court has sufficient authority to determine a procedure for relief that reaches the goal.

There could be other bells and whistles giving the creditor more protection--maybe a lien interest or whatnot--but the principle is the same: lay out the practicalities to the court and let a judge sign off after giving notice to the affected parties, and the PR can get there.

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

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com [mailto: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?