[WSBAPT] Homestead exemption wiping out creditors

[Roger Hawkes]

Hanna and Hans; please send copies of the current bill and Hans’ presentation in Skamania.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Anna Cashman
Sent: Monday, March 13, 2023 2:26 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Homestead exemption wiping out creditors

For those of you who are following Washington laws, members of the WSBA RPPT Section and the executive committee have worked to craft Senate Bill 5589 with Senator Sanford, which is working its way through the legislature at this moment: https://app.leg.wa.gov/billsummary?BillNumber=5589&Initiative=false&Year=2023  It passed the Senate unanimously and is in committee in the House.

For a great discussion on where the homestead exemption and family allowance protections currently stand, Hans Juhl did a great presentation at last year’s midyear meeting in Skamania on this topic.  Therefore, it will not be a topic at this year’s midyear.

Anna

Anna M. Cashman
[cid:image001.jpg at 01D95748.C8377600]
Tel (206) 382-4414 ext. 234 / Fax (206) 382-4412 / acashman at khbblaw.com<mailto:acashman at khbblaw.com>
705 Second Avenue / Suite 800 / Seattle, WA 98104 / www.khbblaw.com<http://www.khbblaw.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 Brent Williams-Ruth
Sent: Monday, March 13, 2023 11:49 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Homestead exemption wiping out creditors

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

**EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA 98063

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.williams-ruthlaw.com/> / facebook<http://www.facebook.com/bwrlaw> /


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

***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
_______________________________________________
WSBAPT mailing list
WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbapt
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20230315/b7897b3b/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 2494 bytes
Desc: image001.jpg
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20230315/b7897b3b/image001.jpg>