[WSBAPT] Creditor claim on debt not due

[Mike Zeno]

Some random thoughts:

Immediate reaction:  It would be sensible to treat it as a current claim for the present value of the debt-with an inevitable argument over the appropriate discount rate.

I would expect there to be case law on this in some states, since it's not an unusual scenario.

If you're dealing with the Laserpro documents that many banks use, there's probably an automatic acceleration.

Not sure of the effect of the federal limitations on due-on-"sale" clauses

Mike



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From: wsbapt-bounces at lists.wsbarppt.com <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>
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
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