[WSBAPT] Homestead exemption wiping out creditors

[Roger Hawkes]

Thanks.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Mark McClure
Sent: Thursday, March 16, 2023 10:29 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Homestead exemption wiping out creditors

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<mailto:Mark at McClureLawGroup.com>
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On Thu, Mar 16, 2023 at 10:26 AM Roger Hawkes <roger at skyvalleylawyers.com<mailto:roger at skyvalleylawyers.com>> wrote:
Got it; I saw the 2021 values☹

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: Wednesday, March 15, 2023 2:58 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto: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<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.

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 Roger Hawkes
Sent: Wednesday, March 15, 2023 2:23 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto: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<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: Monday, March 13, 2023 11:35 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto: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<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.***
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