[WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

Fri Sep 20 18:33:55 PDT 2019

Perhaps the PR could transfer the house to the beneficiary subject to a note and security interest (in favor of the creditor) for the amount of the debt. 
Once the beneficiary takes possession, he or she can refinance and pay off the creditor. 
Assuming the creditor is not interested in receiving monthly payments, the note could be very short-term -- maybe three months -- just long enough to allow the beneficiary to refinance and pay off the creditor. (This will only work if the beneficiary is confident about being able to refinance.)  
Hope this helps,
John

John Creahan
www.cairn-law.com
206-578-5877
Fremont office:
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Terry Tassin
Sent: Friday, September 20, 2019 5:10 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

Friday after 5 pm thought - have the PR set up an LLC with PR as sole member, then PR transfers the property into the LLC, and then have LLC sole member approach lenders re: loan?

--------
Terry J. Tassin, Jr.
Scarborough McNeese Oelke & Kilkenny, P.C.
Five Centerpointe Drive, Suite 240
Lake Oswego, Oregon  97035-8682
Phone: 503.601.3698
Fax: 503.601.3699
tjt at smoklaw.com

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-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Friday, September 20, 2019 4:48 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

Well, client has now approached two lenders and both refuse to lend to a PR of an estate.  The banks are saying he must transfer from the estate to himself personally first before they will consider a loan secured by the property.  If the creditor is not willing to allow a transfer to the PR individually, then we will get a court order.  Thanks for everyone's ideas.  They have been helpful.  

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-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John Creahan
Sent: Tuesday, September 17, 2019 7:27 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

Paul,
Do you have a lender? I think Eric's answer is technically correct, but I suspect that many banks would hesitate to make a loan (with the PR as borrower) in this situation. 
Just a thought,
John

John Creahan
https://apc01.safelinks.protection.outlook.com/?url=www.cairn-law.com&data=02%7C01%7C%7C929b8f741be243aa220d08d73be06a1e%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637043707361945721&sdata=80gKqPODSugEKDDIQ8gohFV7frGmuhDPc6Z5flei%2BIM%3D&reserved=0
206-578-5877
Fremont office:
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Lanza
Sent: Tuesday, September 17, 2019 4:58 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

Does PR have non-intervention powers? RCW 11.68.090(1) allows PR to encumber/mortgage real property belonging to the estate.

Eric J. Lanza, J.D.

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Paul Neumiller
Sent: Tuesday, September 17, 2019 4:37 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

Listmates:  PR is surviving spouse.  PR needs to take out a loan secured by the family residence to pay off a creditor's claim.  Can a PR, as PR of an estate, borrow against an estate asset such as the residence or does PR have to transfer the residence into PR's name first, then borrow against the residence in order to pay off the creditor?  

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