[WSBAPT] Can Beneficiary Refuse Distribution of RP?

[Bruce Moen]

I accepted a court appointment as Successor Trustee to resolve some trust issues.
One of the assets was large commercial warehouses and adjacent parking and storage areas. Unknown to the court and the beneficiaries was toxic waste from one of the commercial tenants had poisoned the land..

A month after the appointment, I got a letter from the Dept of Ecology demanding a seven figure clean-up and threatening to hold me personally liable. Gulp.  I hate it when that happens!

  Bruce Moen

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of cyfield at rockisland.com
Sent: Wednesday, February 9, 2022 5:34 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Can Beneficiary Refuse Distribution of RP?

Yes, that vesting rule with respect to contaminated property issue came up recently and is perplexing. Seems like if there is no acceptance element to rule then you could really screw someone over in your estate plan by leaving them dirty dirt, intentional or not.  Cy

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon); Phone: 360-472-1223
Mail: POB 367, Shaw Island, WA 98286; Physical Office:  640 Mullis St #214, Friday Harbor, WA
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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 Bruce Moen
Sent: Wednesday, February 9, 2022 4:24 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?

I understand the common law rule is that a done or a purchaser has to "accept" the transfer.  When the recipient records, then the inference is that they accepted it.  When the Grantor records, then no inference of acceptance.

I've never been able to reconcile "acceptance" with the instant vesting rule upon the death of an owner to the heirs.  Contaminated land or not.

  -Bruce Moen

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 Jeff at bellanddavispllc.com<mailto:Jeff at bellanddavispllc.com>
Sent: Wednesday, February 9, 2022 1:33 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?

I do not believe you can force a beneficiary to accept real property if they do not want it.  One of the prerequisites to a valid transfer is the deed is given to, and accepted by the Grantee.  If you can force a person to take real property, then find me some contaminated property to give to my "best" friend.

Jeff

W. Jeff Davis
BELL & DAVIS PLLC
P.O. Box 510
720 E. Washington Street, Suite 105
Sequim WA 98382
Phone: (360) 683.1129
Fax: (360) 683.1258
email: jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>
www.bellanddavispllc.com<http://www.bellanddavispllc.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 Diane J. Kiepe
Sent: Wednesday, February 9, 2022 8:18 AM
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?

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)
www.scarfflaw.com<http://www.scarfflaw.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 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
www.dljslaw.com<http://www.dljslaw.com/>

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