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

[Mike Winslow]

I had these same thoughts on this topic when the post came in and agree with
Eric.
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
This message is from an attorney, so it's confidential. If you are not the
intended recipient, it's too late to stop reading this message, but you may
not use it for any improper purpose. Huge Disclaimer available upon request.
 
From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Monday, March 16, 2020 9:54 AM
To: WSBA Probate & Trust Listserv
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
 
From: wsbapt-bounces at lists.wsbarppt.com <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
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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