[WSBAPT] Probate involving Idaho corp. and real property

[Diane J. Kiepe]

Hello Inge,

One thing that jumps out to me right away is that if the real estate is owned by a corporation, the decedent’s share is based on his/her residency, not where the real estate is.

Second point that I would think is pretty definitive is, if the date of the promissory note is a time during which your client believes W was competent, I don’t see a quick and inexpensive way to look before that period.  Presumably she knew what she was doing when she accepted that in exchange for her share.  I would ask if the note is secured just in case the payments stop.

Regarding the inventory, I would start with the note because that is the one for sure thing you know you have.

Regarding keeping the estate open, that’s ridiculous, the PR can distribute out the note to the estate beneficiary or beneficiaries I would suspect and close the probate as we don normally (I have had to distribute promissory notes out and it makes complete sense).

Happy to chat over the weekend if you want to bounce thoughts around.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Inge Fordham
Sent: Friday, December 10, 2021 4:24 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Probate involving Idaho corp. and real property

Colleagues,

I am handling a probate for a joint estate with a sticky family situation involving the sale of real property in Idaho.  My initial thought is that my client (the PR of the joint estate) may need to retain counsel in Idaho, where I am not licensed.  Beyond that, I don’t know where to begin.  Here are the basic facts.  Husband (H) was a shareholder in an Idaho corporation with 6 other family members (each held a 1/7 interest).  I have no information as to the assets of said corporation aside from the fact that it appears the corporation owned real property located in Oneida County, Idaho.  I do not have the address or parcel number for the property.  Based on facts discussed below, it appears that the Idaho corporation may have entered into a real estate contract for the sale of the aforementioned real property.  I do not have the contract and do not know when the contract may have been executed.  H passed away intestate in WA in 2011.  At some stage after H passed, there was a family meeting with W where the family decided that payments should be made to W going forward.  It does not appear that any formal paperwork was drawn up.

Fast forward several years.  In June 2020, the Idaho corporation entered into a promissory note related to the sale of the aforementioned Idaho property (presumably for the balance owed).  The property is not identified in the promissory note.  W passed away in 2021 leaving no record of the Idaho corporation, promissory note, property, etc.  My client (H & W’s daughter, the PR) only learned of the property and the promissory note because she received payments that were being made to her mom, W.  She contacted her cousin, the sole member of the Idaho limited liability company that purchased the property and entered into the promissory note) and he refused to provide any information other than the original promissory note and a schedule of payments that were made following June 2020 (when the promissory note was executed).  The cousin (who also happens to be an attorney) refuses to provide any additional information.  It appears he is content to continue issuing checks to W’s estate until the promissory note is paid in full in 2025 (per the terms of the note).

I don’t know where to begin.  I need to know whether the aforementioned property is titled in the name of the corporation, whether it had other assets, the balance of the note, etc. and the cousin is not cooperating.  Does my client need to retain counsel in Idaho to investigate this further and perhaps pursue a TEDRA-like action in Idaho?  Her siblings have requested an inventory and appraisement and I don’t know how to identify the assets.  Do I list a 1/7 interest in the corporation and a 1/7 interest in the promissory note?  I can’t say whether the corporation owns real property so I can’t list that…. I don’t even have an address or parcel number.

Help!


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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