[WSBAPT] QUESTION - BENEFICIARY DOES NOT WANT BEQUEST

[Jennifer L White]

Hi Fern,
A few thoughts tagging onto Eric's cogent post:

  *   Like Eric questioned, it would be helpful to know exactly how this interest is classified to know what your options are in handling it in relation to the probate and closing same.
  *   If this is indeed a beneficiary designated IRA and this heir is one of the named beneficiaries, then isn't it non-probate and you can disregard dealing with it in the probate?
  *   In any event, you cannot just give it to the others without the errant relative disclaiming it. If it is after the 9 months, then it would be a non-qualified disclaimer. Tax attorneys chime in here, but if that is the case, then wouldn't the refusing heir still have some potential income taxes due on an RMD even if he disclaims (after the 9 months)?
  *   I have had this a couple of times over the years. One, the beneficiary in question was homeless out of state and we lost touch with him.  We were just about to do the statutory procedure (RCW 11.76.200, etc.) but were notified he had passed away, solving his disappearance. The worst one was for over $400K. We had to hire a PI to even find him as he had been estranged from the family for over 20 years. He was up in the bush of Alaska. Fortunately for us, the guy hired an attorney for a short time period near the end of the probate. We ended up getting a cashiers check from the bank for his share (thereby removing it from the estate account so it could be closed) and then transmitted it to his then attorney making it his problem. My PR was friends with the bank President where we got the check issued. He periodically checked the internal bank records for us and the check was never negotiated. I think it eventually ended up at unclaimed property per banking regulations. My client and the other sib's always figured if it went there and they got proof he was deceased, that they would make a claim then. The relative had never married and did not have any known descendants.

Good luck!

Jennifer L. White, Esq.
[cid:image001.jpg at 01D9B57E.F815DF30]

jen at appletreelaw.com<mailto:jen at appletreelaw.com>
2200 S 76th Ave
Yakima, WA 98903
509.225.9813

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Thursday, July 13, 2023 9:24 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] QUESTION - BENEFICIARY DOES NOT WANT BEQUEST

I'm not sure I understand what a "beneficiary IRA" is. Does that mean the decedent had an IRA that named the beneficiary (I'm just going to call them "B") as a beneficiary, and now B's share of the IRA has been moved into an inherited IRA in their name? I'm guessing that I am misreading your post, because I think B would have had to cooperate with the IRA custodian in order to have an inherited IRA account opened.

Assuming that I'm just wrong about the whole "IRA" thing:


  1.  A refused bequest does not flow to other beneficiaries automatically. If B disclaims the gift, then it can be distributed as if B had predeceased. If B simply refuses to receive it, I find it gets tricky. I did have this happen once, and I ended up asking the court for an order authorizing the PR to deposit that cash into the court registry, and deliver notice to B that it's there for them to pick up if and when they want it.
  2.  Not if the PR knows there are undistributed assets. A probate can be re-opened if new assets are discovered, but in this circumstance the PR has to do something with the known asset that is supposed to go to a known beneficiary.

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>

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 Fern Herbert
Sent: Wednesday, July 12, 2023 7:49 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] QUESTION - BENEFICIARY DOES NOT WANT BEQUEST

Hello List mates,

Interesting issue: We have a beneficiary who refuses to take what was bequeathed to him. The funds have been placed in a beneficiary IRA for him. PR now wants to close probate. If this beneficiary never accepts the bequest, the PR would like to eventually distribute his share to the other beneficiaries.

 1)Does anyone know of any legal guidance on if and when the PR may go back and distribute the contents of this bequests to the other beneficiaries?
 2) Can the PR close probate and then re-open later on to re-distribute?

Fern Herbert
Managing Attorney
Zenith Law Group, PLLC

Business Mailing Address
4320 196th St. SW B-712
Lynnwood, WA  98036
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