[WSBAPT] Rental income from an asset subject to a specific bequest?

Tue May 30 18:49:28 PDT 2023

Thanks to Eric and to Amy Lewis,

Authority and food for thought!

  Bruce Moen
________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Eric Nelsen <eric at sayrelawoffices.com>
Sent: Tuesday, May 30, 2023 10:43 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Rental income from an asset subject to a specific bequest?

I haven’t searched case law, but would the immediate vesting rule under RCW 11.04.250 and RCW 11.04.290 suggest that rents from real estate that immediately vests also goes to that beneficiary? RCW 11.04.250 says:

The title and right to possession of such lands, tenements, or hereditaments so vested in such heirs or devisees, together with the rents, issues, and profits thereof, shall be good and valid against all persons claiming adversely to the claims of any such heirs, or devisees, excepting only the personal representative when appointed, and persons lawfully claiming under such personal representative....

I know that it’s still subject to the PR and the Estate debts, but if there is a specific bequest of real estate, then I think the abatement scheme under RCW 11.10.010 would mean that the rents would be classified as specific bequest, same as the real estate itself. Which means the PR needs to exhaust intestate and residuary property before invading the rents to pay estate expenses.

On the other hand, should the rents be used to pay property-specific expenses, such as property taxes and insurance, or are those general administrative expenses? I dunno.

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>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Bruce Moen
Sent: Sunday, May 28, 2023 5:34 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Rental income from an asset subject to a specific bequest?

Diane,

Thank you very much.

I agree on a gut level, but cannot find any authority.

Do you know of any?

Thanks again,

Bruce

Bruce Moen, Attorney

1200 5th Avenue, Suite 625

Seattle,  WA 98101

206-441-1156

________________________________

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 Diane J. Kiepe <DJKiepe at depdslaw.com<mailto:DJKiepe at depdslaw.com>>
Sent: Sunday, May 28, 2023 1:54:06 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Rental income from an asset subject to a specific bequest?

The rent should definitely follow the specific bequest of the home.  The question is what if anything, of that rent was used to pay expenses for that property (a potential and likely offset).  Real Property, its rights and burdens, vest in the devisee at death, subject only to claims against the estate.

In fact, and I would be the PR did not do this, the estate was likely to be required to file a 1041 since death since the filing threshold is gross income over $600 – heck, that is typically under one month’s rent.

Good luck.

Diane J. Kiepe

Diane J. Kiepe

Douglas Eden

717 W. Sprague Ave.

Suite 1500

Spokane, WA  99201

djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>

509-455-5300

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 Bruce Moen
Sent: Thursday, May 25, 2023 5:08 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Rental income from an asset subject to a specific bequest?

Any authority to segregate the rental income of a residence during probate administration?

The Will has a specific bequest (specific devise?) of the residence to a person.  That person does not share in the residue.

Assume that the residue is ample to pay all costs of the probate and that the rental income is not needed to make the estate solvent.

What if the renter is the PR and the PR takes the residue?

 Long administration of years.

Seems unfair that the PR paying the rent gets all of the rental returned via the residue whereas the Devisee gets nothing.

Thanks,

  Bruce Moen

***************************

Bruce R. Moen

Moen Law Offices PS

1200 5th Avenue, Suite 625

Seattle, WA 98101

206-441-1156

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