[WSBAPT] PR deed done w/o knowledge of estate - reverse PR Deed

[Eric Nelsen]

Ironically, I think it might actually be better for the Estate not to take the property back in this circumstance. From the Estate's perspective, why take back title to something of zero value? Is there a possibility of managing a short sale that would realize some equity?

In answer to your actual question, I would suggest using rescission of sale WAC 458-61A-209<https://apps.leg.wa.gov/wac/default.aspx?cite=458-61A-209>. Since there's no consideration return to the estate, attaching a narrative explaining that this is reversal of an inheritance distribution, where no consideration passed, might work. But I would suggest looking carefully at how the original Estate-to-heir transfer was done, and what the REET affidavit said in that circumstance, to make sure that all the paperwork looks consistent. If they did something strange like using the gift exemption for that transfer, they might have said something about the Estate's underlying debt that could cause complications-see WAC 458-61A-103 and WAC 458-61A-201(3).

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Monday, February 24, 2020 3:31 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] PR deed done w/o knowledge of estate - reverse PR Deed

I have a PR appointed before I came into the picture.  The house is so far underwater, it is ridiculous.
She deeded the residence to herself as heir to the Estate - now realizes the estate is clearly insolvent.  More than $150k owed than worth of house.

Has anyone corrected a PR deed back to the estate from the PR claiming it was done in error?
If yes, I'd love to know the WAC or RCW that was used in this instance.

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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