[WSBAPT] DOR Tax Warrants on Beneficiary of Estate with Real Estate Assets Only

[Roger Hawkes]

Concur.

Roger Hawkes, WSBA # 5173
Hawkes Law Firm, P.S. and Sky Valley Lawyers, PLLC
Office: 19944 Ballinger Way NE
              Shoreline, WA 98155
                         And
               423 Main, Sultan, WA 98294

               Voice: 206 367 5000
                Fax:    206 367 4005
                www.hawkeslawfirm.com<http://www.hawkeslawfirm.com>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Monday, March 16, 2020 9:54 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] DOR Tax Warrants on Beneficiary of Estate with Real Estate Assets Only

That doesn't sound right. Unless DOR has an actual argument that it somehow has a direct interest in the real estate-meaning, it actually owns a title interest, not just having a lien for monetary reimbursement-I don't see how DOR can require transfer of a specific asset.

There is also a difference between DOR having a lien on the real property, versus DOR having a lien on A's interest in the Estate. A's interest in the Estate is inchoate, is subject to the Estate's need to pay creditors and administrative expenses, and does not involve a right to receive any specific asset. So even if DOR has a lien against A's interest in the Estate, that would not give it authority to tell the PR what to do with the real property, or in what form to distribute A's interest.

Maybe DOR wants to argue that the heirs inherited the real property automatically under RCW 11.04.250<https://app.leg.wa.gov/RCW/default.aspx?cite=11.04.250>, and so it has a lien directly on the real property. But even that wouldn't work for them, because that statute specifically says that an heir's right to real property is subordinate to the rights of "the personal representative when appointed, and persons lawfully claiming under such personal representative."

I would want to see the specific statutory authority that DOR is relying on to assert a right to receive real property in satisfaction of its lien.

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>

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 Natalie Kuehler
Sent: Sunday, March 15, 2020 3:15 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] DOR Tax Warrants on Beneficiary of Estate with Real Estate Assets Only

Hello all,

I have an estate with substantial real estate holdings but nothing else in the way of assets. There are two residual estate beneficiaries, A and B. A has outstanding tax warrants that are a little less than the value of A's interest in the residual estate. DOR has filed a notice of tax lien on A's interest in the estate assets. DOR is now telling me that the personal representative has to distribute real estate valued in the amount of DOR's tax warrants directly to DOR.

Has anybody else ever dealt with this? I can't quite believe that the PR actually needs to distribute real estate to DOR. It would make much more sense to either (i) require the PR to sell A's share of the real estate and satisfy B's tax warrants (and DOR's tax lien on the estate assets) from that real estate sale before distributing the remaining property or sales proceeds to A; or (ii) require the PR to distribute the real estate to A subject to a lien by DOR.

A is apparently trying to negotiate a settlement with DOR; we have no idea whether that will be successful however. A is also not interested in disclaiming at this point.

Any advice would be greatly appreciated!

Many thanks,
Natalie

[signature_1525356859]

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