[WSBAPT] advancement

Fri Jul 31 13:01:06 PDT 2020

Bryce:

I started characterizing outstanding amounts of debt as forgiven with eleemosynary intent at the moment of death and transformed into an advance on the beneficiary’s interest in the estate about 12 years ago. There was a case where a child had borrowed money from the parent that was supposed to come due at death, but the child had discharged the debt in bankruptcy. That meant the debt was no longer an asset of the estate and could not be used to fund any distribution to that child. 

John J. Sullivan

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Lewis, Amy C.
Sent: Friday, July 31, 2020 12:52 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] advancement

This raises a good drafting tip – when I include these provisions on the front end, I specify that the debt should be taken into account regardless of whether it is legally enforceable at the time of death.

Amy Lewis, Attorney

1201 Pacific Avenue, Suite 1200| Tacoma, WA 98402
phone 253.572.4500 | fax 253.272.5732 |  <http://www.eisenhowerlaw.com/> www.eisenhowerlaw.com

From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Eric Nelsen
Sent: Friday, July 31, 2020 12:46 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] advancement

I agree with Terry, at least with regard to a debt that was enforceable but is now barred by statute of limitations. The S/L only bars an affirmative suit to enforce the debt; it does not prevent an Estate from deducting the debt owed from an inheritance.

Sincerely,

Eric

Eric C. Nelsen

Sayre Law Offices, PLLC

1417 31st Ave South

Seattle WA 98144-3909

206-625-0092

eric at sayrelawoffices.com <mailto:eric at sayrelawoffices.com> 

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From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Terry Tassin
Sent: Friday, July 31, 2020 12:27 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] advancement

I ran into this some years ago, with a beneficiary represented by a very aggressive attorney. He said yes, the debt has to be enforceable.  I and trustee said no, unless the trust so states. We won. 

_____________________________
TERRY J. TASSIN, JR.
Scarborough, McNeese, Oelke & Kilkenny, P.C.
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Tel:  503.601.3698 <tel:503.601.3698>  
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Email:  tjt at smoklaw.com <mailto:tjt at smoklaw.com>  
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On Jul 31, 2020, at 12:21 PM, Bryce Dille <Bryce at dillelaw.com <mailto:Bryce at dillelaw.com> > wrote:

If trust states that any amount owed by a beneficiary  to trust grantor is to be considered an advancement when making a final distribution does the debt have to be legally enforceable when distribution is made in my case s/l has run on the debt owed trustor? Thanks for your input

Bryce H. Dille

Dille Law, PLLC

2010 Caton Way SW Ste. 101

Olympia, WA 98502

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