[WSBAPT] Homestead exemption wiping out creditors

[Brent Williams-Ruth]

These are all questions I am curious about as well and am hoping that at
the Mid-Year Section Meeting in Walla Walla in June.....we will get a panel
that will talk about how this has been applied since the change occurred.
Fingers crossed!!

*Brent Williams-Ruth* (pronouns: he/him)
*Attorney-At-Law*

*Law Offices of Brent Williams-Ruth, **a division of BWR Consulting, PLLC*

*Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*

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On Mon, Mar 13, 2023 at 11:45 AM Eric Nelsen <eric at sayrelawoffices.com>
wrote:

> Colleagues—I was just reviewing the median home price
> <https://wcrer.be.uw.edu/wp-content/uploads/sites/60/2023/03/HMR-4Q2022-annual-medians.pdf>
> in each county in Washington in reference to the family support (homestead)
> exemption under Ch. 11.54 RCW
> <https://app.leg.wa.gov/RCW/default.aspx?cite=11.54&full=true>, and
> discovered that King County’s exemption amount is now approaching a million
> dollars: $914,300!
>
>
>
> This really has turned into a powerful way to preserve a lot of assets
> against creditors, even legitimate creditors who otherwise would be paid in
> the course of a creditor claim process. Back when it was only $125,000 it
> frequently didn’t affect creditors because non-sheltered assets were still
> sufficient to pay all creditors, but these days I routinely handle estates
> of $1 million or less in assets where there is significant unsecured debt.
> Even just, say, $40,000 in credit cards, or co-signing on a student loan
> for $100,000.
>
>
>
> So I’m wondering—is it being used more often now during probate
> administration? Has anyone seen pushback from the courts, or from
> creditors, on its use? Is there a federal regulation that prevents its use
> against a federal student loan?
>
>
>
> One thing I notice that isn’t really addressed: How to determine which
> county’s exemption amount should be applied for the decedent’s exemption.
> Let’s say the decedent was a resident of Snohomish County but the probate
> is filed in King County. The statute doesn’t say which county should be
> used. I’d guess that a court would say Snohomish County was more
> appropriate, but: what about a Portland, Oregon resident who owns real
> property in King County *and* Pacific County, and the probate is filed in
> Clark County?
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
>
> Seattle WA 98144-3909
>
> 206-625-0092
>
> eric at sayrelawoffices.com
>
>
>
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