[WSBAPT] Correspondence from Creditor w/o Claim

Tue Aug 16 16:43:19 PDT 2022

Thanks, Eric, Josh, and Paul.  I appreciate your thoughts and insight.  My situation involves a subrogation claim being pursued by a “subrogation specialist.”  The insurer is Safeco.  After probate was commenced, the PR (my client) received a notice from Wilber & Associates, P.C., Attorneys at Law, out of Normal, IL.  The correspondence was a reminder to the decedent about a monthly payment that was overdue.  My client had no knowledge of any subrogation claim or payment plan.  I sent a copy of the Notice to Creditors to Wilber & Associates.  In the cover letter, I identified the relevant statute, court, cause no., decedent’s DOB, Wilber & Associates’ client (Safeco), Safeco’s Claim No., and Wilber & Associates’ Reference No.  In my view, that was more than I was required to provide.  In response, I received voice messages and emails from Wilber & Associates asking for an update.  I responded to one email requesting confirmation of whether I received certain written correspondence.  I confirmed that I did, in fact, receive the correspondence.

As far as notice, I don’t believe I had an ethical right to contact Safeco directly (as my first notice of the claim was received by counsel).  I confirmed receipt of written confirmation and nothing further.  You would think a law firm would know what to do …. And they have not filed a creditor claim.

There is one beneficiary, a minor child of the decedent.  My client (the PR) is the decedent’s mother, grandmother to the heir, and the trustee of a testamentary trust in favor of the minor heir until he reaches the age of 22 (he is now 16).  We have a probate GAL for the minor beneficiary.  It doesn’t seem to be in the best interest of the estate or the minor beneficiary to allow a “claim” that wasn’t properly asserted per Washington law.  As an added “cherry on top,” the minor’s mother is incredibly aggressive and wants EVERYTHING (though she has no right to anything).  I have no doubt she would take legal action if my client improperly agreed to pay a claim that wasn’t properly asserted.

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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 Paul Neumiller <pneumiller at hotmail.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Tuesday, August 16, 2022 at 1:42 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Correspondence from Creditor w/o Claim

I guess I have a different take on the original question.  Unfortunately, Inge’s question does not tell us how many heirs are in her probate.  While I would not contact the potential creditor, I would certainly explain the situation to the PR.  I once had a SOLE HEIR/PR who, after I told him he didn’t need to pay the hospital after the expiration of the creditors period, answered “They took such wonderful care of Mom during those last few months.  The bill is legitimate.  Of course, I’m going to pay the hospital.”  I guess the point is that if the PR is the only heir so that the PR does not owe a fiduciary duty to anyone else, then maybe, just maybe, the PR may decide to pay the bill because it is the “moral” thing to do even if it isn’t the “legal” thing to do.  I have also had PR’s who will contact the other heirs and say “We don’t have to pay this bill but I think we ought to. Whatcha you all think?”

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Joshua McKarcher
Sent: Tuesday, August 16, 2022 12:54 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Correspondence from Creditor w/o Claim

I second Eric, and I’m the guy who in past exchanges advocated paying valid claims even under the safe harbor provision. If you sent an INSURER an actual notice of claim – and to all the relevant addresses they could argue it should have been directed to (I send it to every blasted one I find on any invoice, etc.) -- and they sent an information request in response . . . well, that is just their problem.

If they find a way around it later, let them. But I would not respond to that correspondence either, and I bias toward paying simple, basic, valid claims.

But that’s like hospital and doctor and utility bills – not something like that that the insurer is more than capable of handling properly.

Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com<mailto:josh at mckarcherlaw.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 Eric Nelsen
Sent: Tuesday, August 16, 2022 1:14 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Correspondence from Creditor w/o Claim

I think the policy orientation of the statutes is that creditors must act to protect themselves. The PR’s fiduciary duty extends to giving them fair notice so they can exercise their rights, and no further. A PR does not have a duty to respond to requests for information beyond the Notice to Creditors. I generally advise my clients not to respond to inquiries asking about date of birth, social security number, address, or any other additional information not included in the Notice to Creditors. If a claim does come in, the PR accepts or rejects on a fair basis.

Personally, I think that if your business is having people owe you money (credit card companies, banks, etc.), then it’s your job to track the debtors and know who owes you money. If you can’t figure it out from your own files, then it’s your problem, not the Estate’s.

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 Inge Fordham
Sent: Tuesday, August 16, 2022 11:05 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Correspondence from Creditor w/o Claim

Colleagues,

I want to be sure I am not misstepping on a creditor issue.  Prior to his death, the decedent was making payments to Safeco on a subrogation claim.  I published a notice to creditors and provided actual notice to the creditor as required.  In response, I received a statement of the account and a request for an update as to the status of the probate.  No creditor claim was made or filed with the court.  The deadline for creditors to make claims is Sept. 5, 2022.  I don’t believe I’m required to respond to the request for an update as to the status of the probate (as that information is a matter of public record).  I also feel it would be wrongful for me to point out the error to the creditor so the creditor can timely file a claim.  That said, the funds are owed.  I’m having a moral dilemma over relying on the subrogation specialist’s lack of knowledge to avoid payment of a debt that would be owed if a creditor claim was timely made.  Curious as to how my colleagues handle these situations.

Thank you,

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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://nam12.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.fordhamlegal.com%2F&data=05%7C01%7C%7C00dfe695273548ee51b408da7fc31c91%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637962773251735970%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=9WqSOVxkjGarUN20mviEy7NM14DSK%2FBRP5d4NFpp4fI%3D&reserved=0>

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