[WSBAPT] Question about claims and/or liabilities against the estate from an active or on-going lawsuit

[Mark Anderson]

One way to handle this would perhaps be to represent to the Court in the Petition under RCW 11.68.011 that the Estate is currently solvent but that it remains subject to unknown or contingent creditor claims.  Later, if the actual valid claims against the Estate turn out to be greater than the assets of the Estate, then you could advise the Court of that fact and that the Estate is no longer solvent.  I would expect at that point for the Court to order that the nonintervention powers be revoked.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of msafren at jennylinglaw.com
Sent: 08/18/2023 10:04 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Question about claims and/or liabilities against the estate from an active or on-going lawsuit

Hello Fellow Practitioners,

I have some questions about the effect of an on-going lawsuit against the decedent with respect to claims, liabilities, and solvency of the decedent's estate.

Summary of Facts:
Decedent was involved in a personal injury case and person who claimed sued decedent prior to decedent's death.  The case is active and on-going and as such, total liability is undetermined yet and as well as issues of fault and possible defenses.  At this time is anticipated that a successful claim by the plaintiff would likely exceed the liability insurance coverage- leaving potential liability for any judgment or settlement to the estate.

Giving the uncertainty of the outcome of the lawsuit, when petitioning the court to open probate, need this case and potential liability resulting from the case,  be disclosed as part of the petition?  If so, would it affect the determination of solvency at this time, given that there has been no resolution or determination in the personal injury case?

The only information I was able to find in my searches are RCW 11.40.060, which only appears to speak to the time limits for claims involving liability or casualty insurance-Limitations-Exceptions to time limits, and RCW 11.76.190 addressing the procedure on contingent and disputed claim at the closing or settlement of the estate, but these were unhelpful at this time.

Any guidance or information on these questions and concerns would be greatly appreciated!  Thank you in advance.

Kind regards,

Michael S. Safren, Esq.
Attorney at Law

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005
P: (206) 859-5098 | E: msafren at jennylinglaw.com<mailto:msafren at jennylinglaw.com>
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