[WSBAPT] Homestead exemption wiping out creditors

[Mark McClure]

The values have been adjusted for 2023.  King is now $914,300.

Mark C. McClure

*Managing Attorney *Law Office of Mark McClure, PS

*"Why Retire With Debt?"*1103 West Meeker Street, #101
Kent, WA 98032
Office:  253.631.6484
Email: Mark at McClureLawGroup.com
*Notice of Unavailability:* *      5/16/2021 - 5/28/2021.   *
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On Thu, Mar 16, 2023 at 10:26 AM Roger Hawkes <roger at skyvalleylawyers.com>
wrote:

> Got it; I saw the 2021 values☹
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Eric Nelsen
> *Sent:* Wednesday, March 15, 2023 2:58 PM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] Homestead exemption wiping out creditors
>
>
>
> That’s the 2021 King County median value. The link is in my original email
> “median home price.”
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
>
> Seattle WA 98144-3909
>
> 206-625-0092
>
> 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.
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Roger Hawkes
> *Sent:* Wednesday, March 15, 2023 2:23 PM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] Homestead exemption wiping out creditors
>
>
>
> Good questions;
>
>
>
> Eric: I get a different figure; King $838,300.
>
>
>
> what is the link to the values schedule you are seeing?
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Eric Nelsen
> *Sent:* Monday, March 13, 2023 11:35 AM
> *To:* 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] Homestead exemption wiping out creditors
>
>
>
> 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
>
>
>
> *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.***
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