[WSBAPT] Creditor claim on debt not due

[Eric Nelsen]

I don't have a specific contract in mind but it's potentially coming up in a couple matters so I am wondering. Generally contractual obligations simply continue after death, and the PR can perform on them. RCW 4.20.046(1)<https://app.leg.wa.gov/RCW/default.aspx?cite=4.20.046> and Ch. 11.60 RCW<https://app.leg.wa.gov/RCW/default.aspx?cite=11.60&full=true>. So I'm assuming for these purposes there is no acceleration clause or other contingency triggered by the death that solves the problem.

I like the idea of paying it off in full in exchange for a discount to present value. A practical solution that might simplify things, if the creditor will agree to it. But what to do if the creditor doesn't agree?

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>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please direct mail and deliveries to the Seattle office.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jeff at bellanddavispllc.com
Sent: Thursday, January 5, 2023 3:48 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Creditor claim on debt not due

Eric,

First, do the documents address what happens if the Maker dies before paying the debt?  Is there a provision for accelerating the obligation?  A party to a contract is, usually, not relieved of their obligation by death.  Maybe, practically, its ends the obligation, but if the party has assets, I think not.  If I was a creditor, I would file my claim for the full amount due.  Call it an anticipatory breach.

Jeff

W. Jeff Davis
BELL & DAVIS PLLC
Attorneys at Law
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 Eric Nelsen
Sent: Thursday, January 5, 2023 3:40 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Creditor claim on debt not due

Conceptual problem and I'm interested in everyone's thoughts on this. The creditor claim process specifically includes debts owed by the decedent that are "not yet due." RCW 11.40.070(1)(e)<https://app.leg.wa.gov/RCW/default.aspx?cite=11.40&full=true#11.40.070>.

Say the decedent dies in 2023 owing $50,000 that is due in monthly installments over the next ten years.

How does the PR get this handled and the estate closed in a timely fashion?

Does the answer change depending on whether the debt is secured or unsecured? Assume an intestate estate so RCW 11.12.070<https://app.leg.wa.gov/RCW/default.aspx?cite=11.12.070> doesn't apply.

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>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please direct mail and deliveries to the Seattle office.

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