[WSBAPT] Who Pays Debt on Vehicles?

[Inge Fordham]

Thank you, Jennifer!  That was my argument – just needed the statute.  Appreciate it!


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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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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of Jennifer L White <jen at appletreelaw.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Wednesday, July 7, 2021 at 4:25 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Who Pays Debt on Vehicles?

Inge,
Unless the Will provides otherwise, the one who gets the vehicle pays the loan.
RCW 11.12.070<http://app.leg.wa.gov/RCW/default.aspx?cite=11.12.070>
Devise or bequeathal of property subject to encumbrance.
When any real or personal property subject to a mortgage is specifically devised, the devisee shall take such property so devised subject to such mortgage unless the will provides that such mortgage be otherwise paid. The term "mortgage" as used in this section shall not include a pledge of personal property.
A charge or encumbrance upon any real or personal estate for the purpose of securing the payment of money, or the performance of any covenant or agreement, shall not be deemed a revocation of any will relating to the same estate, previously executed. The devises and legacies therein contained shall pass and take effect, subject to such charge or encumbrance.


Jennifer L. White, Esq.
[cid:image002.jpg at 01D7734C.C78F1230]

jen at appletreelaw.com<mailto:jen at appletreelaw.com>
PO Box 11037
Yakima, WA 98909
509.225.9813

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Inge Fordham
Sent: Wednesday, July 7, 2021 4:08 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Who Pays Debt on Vehicles?

Colleagues,

Hypothetical.  An estate has 0 liquid assets to pay debts or expenses of estate administration.  The estate assets are comprised of real property, vehicles, and other tangible goods.  Decedent’s will leaves all vehicles to John Doe and the residual to John Green.  There is an auto loan against a vehicle in the amount of $10k.  Does John Doe take the vehicle subject to the $10k loan (i.e., the gift is essentially one of equity in the vehicle and John Doe is responsible for the debt owed) or is John Green responsible for paying the debt (as the residual beneficiary)?

Thanks,


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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<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.fordhamlegal.com&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=kDcM-fraYQNOZ1rCslLoMSSRXJQXmQVvRJbE6ymQGho&m=wwjEcad6z7-qnujGAP0WUHMsEgsG0hyn2eSHq6r5yDs&s=Uo6L3imtahPH3Cf8teolq5Ljadvwga6-b5WCrxQ5Y3g&e=>

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