[WSBAPT] What is the most cost effective way for 2 minors to get assets of small and insolvevent estate

[Andrekita Silva]

  Law Office of
F.ANDREKITA SILVA
_______________________________________________________  
                                                            
March 30, 2023
 
List serve,
 
I have a client whose adult son died about 3 months ago. He was  
divorced and left behind 2 young children.  His debt exceeded $40K. 
 
He had about 2K in a checking account that included his last paycheck,  
an IRA with about $4k in it (no named beneficiary), and a $15K life  
insurance policy that also did not name a beneficiary (this Dad really  
did not planning...)
 
I initially thought Grandmother could explain the insolvency to  
creditors and ask them to voluntarily discharge the debt of deceased  
son as if a Petition for family support were filed, creditors wouldn’t  
get anything anyway.  However, the grandparents don’t have custody.  
They really just want to gather the assets and put them into a college  
fund for the children. 
 
It also occurred to me that as grandparents, they aren’t successors!!!  
The statute doesn’t actually authorize them to execute a small estate  
affidavit. So, this isn’t a means for them to access the funds for the  
children (at least I assume not?)
 
I looked at the statute for Minor Conservatorships.  It seems that  
under that statute, the paternal grandparents could get a Limited  
Appointment as Minor Conservators for the purpose of securing the  
funds from the bank, and the IRA and life insurance.  I assume that if  
the grandparents identified the assets they are trying to secure in  
the Petition for Appointment, this could satisfy creditors that they  
wouldn’t get their debt paid, and they would voluntarily agree to  
discharge the debt had by the deceased.
 
The children’s mother has not been handling any of the issues  
pertaining to her Ex’s death.  If the funds (life insurance, IRA,  
checking account) are put into a blocked account, does anyone think  
the court would insist that bio mother be the conservator? It seems  
there is so little money at stake, the bio mom would not want to go  
through the hassle of establishing a conservatorship for this limited  
purpose.
 
Has anyone tried this?   Would the Conservatorship seem like a way to  
avoid probate?
 
I’m just wondering what the most cost-effective way would be for the  
grandparents to get the assets for the children, to be then placed in  
a blocked college account. 
 
 
andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com[1]
 
 


Links:
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[1] http://www.seattle-silvalaw.com/

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