[WSBAPT] Creditor claim on debt not due

[Diane J. Kiepe]

Hello,

I have had this issue and valued, for estate inventory purposes (and discounts are appropriate in some instances).  When it was intrafamily we either simply gave the creditor the value towards his/her share, but I have also disturbed notes out and the person holding the note becomes an "assignee" - most loan documents provide an assignee can enforce the note (as ours did).

Good luck.

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 <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Mike Zeno
Sent: Thursday, January 5, 2023 4:13 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Creditor claim on debt not due

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<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
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Seattle WA 98144-3909
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eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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