[WSBAPT] Homestead exemption wiping out creditors

[John J. Sullivan, Esq.]

HMR-4Q2022-annual-medians.pdf (uw.edu)
<https://wcrer.be.uw.edu/wp-content/uploads/sites/60/2023/03/HMR-4Q2022-annu
al-medians.pdf> 

 

John J. Sullivan

 

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 <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-annu
al-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.

 

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