[WSBAPT] Can Beneficiary Refuse Distribution of RP?

[Jennifer L White]

Tagging on to the other cogent responses - You may want to consider bringing a TEDRA petition to get a court order "blessing" the trustee's act of distributing that property to the beneficiary. If you are distributing everyone's shares, then I would include the whole distribution pattern in the petition.
RCW 11.96A.030<http://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.030>
Definitions.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Citation" or "cite" and other similar terms, when required of a person interested in the estate or trust or a party to a petition, means to give notice as required under RCW 11.96A.100<http://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.100>. "Citation" or "cite" and other similar terms, when required of the court, means to order, as authorized under RCW 11.96A.020<http://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.020> and 11.96A.060<http://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.060>, and as authorized by law.
(2) "Matter" includes any issue, question, or dispute involving:
(a) The determination of any class of creditors, devisees, legatees, heirs, next of kin, or other persons interested in an estate, trust, nonprobate asset, or with respect to any other asset or property interest passing at death;
(b) The direction of a personal representative or trustee to do or to abstain from doing any act in a fiduciary capacity;
(c) The determination of any question arising in the administration of an estate or trust, or with respect to any nonprobate asset, or with respect to any other asset or property interest passing at death, that may include, without limitation, questions relating to: (i) The construction of wills, trusts, community property agreements, and other writings; (ii) a change of personal representative or trustee; (iii) a change of the situs of a trust; (iv) an accounting from a personal representative or trustee; (v) the determination of fees for a personal representative or trustee; or (vi) the powers and duties of a statutory trust director or directed trustee of a directed trust under chapter 11.98B<http://app.leg.wa.gov/RCW/default.aspx?cite=11.98B> RCW;
(d) The grant to a personal representative or trustee of any necessary or desirable power not otherwise granted in the governing instrument or given by law;
(e) An action or proceeding under chapter 11.84<http://app.leg.wa.gov/RCW/default.aspx?cite=11.84> RCW;
(f) The amendment, reformation, or conformation of a will or a trust instrument to comply with statutes and regulations of the United States internal revenue service in order to achieve qualification for deductions, elections, and other tax requirements, including the qualification of any gift thereunder for the benefit of a surviving spouse who is not a citizen of the United States for the estate tax marital deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a qualified domestic trust under section 2056A of the internal revenue code, the qualification of any gift thereunder as a qualified conservation easement as permitted by federal law, or the qualification of any gift for the charitable estate tax deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust;
(g) With respect to any nonprobate asset, or with respect to any other asset or property interest passing at death, including joint tenancy property, property subject to a community property agreement, or assets subject to a pay on death or transfer on death designation:
(i) The ascertaining of any class of creditors or others for purposes of chapter 11.18<http://app.leg.wa.gov/RCW/default.aspx?cite=11.18> or 11.42<http://app.leg.wa.gov/RCW/default.aspx?cite=11.42> RCW;
(ii) The ordering of a qualified person, the notice agent, or resident agent, as those terms are defined in chapter 11.42<http://app.leg.wa.gov/RCW/default.aspx?cite=11.42> RCW, or any combination of them, to do or abstain from doing any particular act with respect to a nonprobate asset;
(iii) The ordering of a custodian of any of the decedent's records relating to a nonprobate asset to do or abstain from doing any particular act with respect to those records;
(iv) The determination of any question arising in the administration under chapter 11.18<http://app.leg.wa.gov/RCW/default.aspx?cite=11.18> or 11.42<http://app.leg.wa.gov/RCW/default.aspx?cite=11.42> RCW of a nonprobate asset;
(v) The determination of any questions relating to the abatement, rights of creditors, or other matter relating to the administration, settlement, or final disposition of a nonprobate asset under this title;
(vi) The resolution of any matter referencing this chapter, including a determination of any questions relating to the ownership or distribution of an individual retirement account on the death of the spouse of the account holder as contemplated by RCW 6.15.020<http://app.leg.wa.gov/RCW/default.aspx?cite=6.15.020>(6);
(vii) The resolution of any other matter that could affect the nonprobate asset;
(h) With respect to any custodianship under a uniform transfers to minors act, the determination of any issues subject to court determination under chapter 11.114<http://app.leg.wa.gov/RCW/default.aspx?cite=11.114> RCW; and
(i) The reformation of a will or trust to correct a mistake under RCW 11.96A.125<http://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.125>.
(3) "Nonprobate assets" has the meaning given in RCW 11.02.005<http://app.leg.wa.gov/RCW/default.aspx?cite=11.02.005>.
(4) "Notice agent" has the meanings given in RCW 11.42.010<http://app.leg.wa.gov/RCW/default.aspx?cite=11.42.010>.
(5) "Party" or "parties" means any person who has a legal or equitable interest in, or who holds a power or a claim with respect to, the subject of a matter. Each of the terms "party" or "parties" must be construed liberally in its context to fulfill the purposes of the procedural rules contained in this chapter as supplemented by the court rules and to promote justice, without creating new substantive rights that do not otherwise exist under the laws of this state or principles of equity, and may include without limitation the following:
(a) With respect to any property held subject to a revocable trust:
(i) Each trustee of the property subject to the trust; and
(ii) Each trustor who transferred the property;
(b) With respect to any property held subject to an irrevocable trust:
(i) Each trustee of the trust holding the property;
(ii) Each qualified beneficiary, as defined in RCW 11.98.002<http://app.leg.wa.gov/RCW/default.aspx?cite=11.98.002>, of the property subject to the trust and any other beneficiary whose interest is protected under the constitutional principles of due process; and
(iii) Each holder of a power relating to the property;
(c) With respect to any testate property:
(i) Each personal representative appointed to execute the will governing that property;
(ii) Each devisee or legatee of that testate property;
(iii) Each holder of a power relating to the testate property following the testator's death; and
(iv) Each creditor whose claim has been established by allowance or judgment;
(d) With respect to any intestate property:
(i) Each personal representative appointed to administer that property;
(ii) Each heir of the decedent who owned that property;
(iii) Each holder of a power relating to the intestate property following the owner's death; and
(iv) Each creditor whose claim has been established by allowance or judgment;
(e) With respect to any nonprobate asset, or with respect to any other asset or property interest passing at death, including joint tenancy property, property subject to a community property agreement, or assets subject to a pay on death or transfer on death designation:
(i) Each custodian of the property;
(ii) Each transferee and beneficiary of the property; and
(iii) Each qualified person, the notice agent, or resident agent, as those terms are defined in chapter 11.42<http://app.leg.wa.gov/RCW/default.aspx?cite=11.42> RCW;
(f) With respect to any custodial property subject to a uniform transfers to minors act:
(i) Each custodian of the custodial property;
(ii) The minor, as defined in RCW 11.114.010<http://app.leg.wa.gov/RCW/default.aspx?cite=11.114.010>, for whose benefit the custodian holds the custodial property; and
(iii) Each other person who holds a power under chapter 11.114<http://app.leg.wa.gov/RCW/default.aspx?cite=11.114> RCW to act on behalf of the minor;
(g) With respect to any community property, each spouse;
(h) With respect to a matter relating to the powers and duties of a trust director or a directed trustee, or both:
(i) Each trust director with an interest in the matter;
(ii) Each directed trustee;
(iii) Each beneficiary, holder of a power, or other person whose interest or power is affected by the matter and is protected under the constitutional principles of due process;
(i) Each creditor whose claim has been allowed but has not been paid;
(j) The attorney general to the extent that the attorney general is a necessary and proper party under RCW 11.110.120<http://app.leg.wa.gov/RCW/default.aspx?cite=11.110.120> and corresponding common law;
(k) Each person who claims a legal right, title, or interest in property being subjected to probate or trust administration, nonprobate assets, other property passing at death, or custodial property, including without limitation the resolution of rights and duties under RCW 11.18.200<http://app.leg.wa.gov/RCW/default.aspx?cite=11.18.200> and questions relating to legal ownership or abatement; and
(l) When necessary, a party's representative or representatives, which may include without limitation guardians; custodians; guardians ad litem; special representatives; virtual representatives; attorneys in fact; fiduciaries; and notice agents, resident agents, and qualified persons, as those terms are defined in chapter 11.42<http://app.leg.wa.gov/RCW/default.aspx?cite=11.42> RCW.
(6) "Persons interested in the estate, trust, nonprobate asset, other property passing at death, or custodial property" means all persons legally or beneficially interested in the estate, trust, nonprobate asset, other property passing at death, or custodial property; all persons holding powers with respect to the trust, estate, nonprobate asset, other property passing at death, or custodial property; the attorney general in the case of any charitable trust where the attorney general would be a necessary party to judicial proceedings concerning the trust; all fiduciaries of the estate, trust, nonprobate asset, or other property passing at death; and all custodians of custodial property.
(7) "Trustee" means any acting and qualified trustee of the trust.
(8) "Virtual representative" and other similar terms refer to a person who virtually represents another under RCW 11.96A.120<http://app.leg.wa.gov/RCW/default.aspx?cite=11.96A.120> or other applicable law.


Jennifer L. White, Esq.
[cid:image004.jpg at 01D81D95.9762B230]

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 Diane J. Kiepe
Sent: Wednesday, February 9, 2022 8:18 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Can Beneficiary Refuse Distribution of RP?

Hello John,

In a situation where you suspect a beneficiary is not happy with such a transfer, I probably would not do the transfer standing alone.  As we know the Trustee has a fiduciary responsibility to all beneficiaries and I would question why he feels like, for all beneficiaries, this transfer makes sense.  Having the power to do something, in of itself, is not a defense to the overriding fiduciary duty, in my opinion.  I don't think you can force real estate on someone.

You may want to look at the 30 day notice in in RCW 11.98.145 which implies that while pro rata distributions are allowed, beneficiary can object to same.

Ultimately, of course the Trustee will make the call but I think you must counsel him on the point above, the right to do something does not mean that action stands above challenge.

Best of luck to you.

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<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Stuart Scarff
Sent: Tuesday, February 8, 2022 5:30 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Can Beneficiary Refuse Distribution of RP?

An "agent" can sign on the Beneficiary's behalf, e.g., the Trustee. I have frequently had an agent sign on a Grantor or Grantee's behalf, but admittedly never in a situation where the parties were not in agreement regarding the conveyance.

Stuart Scarff, Esq.
3035 Island Crest Way, Suite 201
Mercer Island, WA  98040
206.236.1500
206.905.5912 (fax)
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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 John Sullivan
Sent: Tuesday, February 8, 2022 4:45 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Can Beneficiary Refuse Distribution of RP?

Listmates:

I think we've discussed this before, but would appreciate refreshing my recollection.

Trustee is ready to close trust, containing real property and securities. Trustee wants to distribute a parcel of land to one beneficiary, and I concerned the beneficiary may not want it. What happens if the beneficiary refuses to sign the REET Affidavit as "Grantee?"
Best regards,
John J. Sullivan
Attorney

Lyons | Sullivan
10655 NE 4th Street, Suite 704
Bellevue, WA  98004
425*451*2400 tel 425-451-7385 fax
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