[WSBAPT] thanks -- WSBAPT Digest, Vol 109, Issue 5
Sharon Rutberg
sharon at salmonbaylaw.com
Thu Oct 5 16:21:01 PDT 2023
Thanks to all who responded to my question about mortgaged property in probate. It's nice to hear I'm not the only one facing these issues. We will continue our campaign of letter writing, and keep in mind the other suggested solutions.
Best wishes,
Sharon
Sharon Rutberg, Attorney at Law
Salmon Bay Law Group, PLLC
1734 NW Market St.
Seattle, WA 98107
206-735-3177, ext. 1
sharon at salmonbaylaw.com
Website: www.salmonbaylaw.com
Washington State Bar #47055
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Sent: Thursday, October 5, 2023 3:11 PM
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Subject: WSBAPT Digest, Vol 109, Issue 5
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Today's Topics:
1. Re: selling mortgaged real property in a probate (Bruce Moen)
2. Advances on Inheritance (Mark Anderson)
3. Advances on Inheritance (Dalynne Singleton)
4. Re: Advances on Inheritance (Philip N. Jones)
5. Re: Advances on Inheritance (Brent Williams-Ruth)
6. Selling mortgaged real property in a probate (Dalynne Singleton)
7. Re: Advances on Inheritance (Joshua McKarcher)
----------------------------------------------------------------------
Message: 1
Date: Thu, 5 Oct 2023 19:04:30 +0000
From: Bruce Moen <brm at moenlaw.com>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] selling mortgaged real property in a probate
Message-ID:
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Content-Type: text/plain; charset="windows-1252"
I've had this many, many times.
Three responses:
1. As suggested, report to the mortgage company and request some slack.
2. Race the mortgage company. Once the foreclosure starts, calculate the time required for the foreclosure process to competition. List, sell and close within the required time frame. Risk: liability if you guess wrong and cannot close.
3. Borrow hard money. Risk: the heirs/ devisees may object to the high interest rates.
Bruce Moen
________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Inge Fordham <inge at fordhamlegal.com>
Sent: Thursday, October 5, 2023 11:27 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] selling mortgaged real property in a probate
Every situation is different. I have assisted clients in similar situations where the estate has little (if any) cash to continue paying mortgage payments. I send a letter to the mortgage company informing them of this fact, providing the status of selling the property, and tell them we will contact them when the house sells. Despite threats, I haven?t had a mortgage company commence foreclosure proceedings. The key (at least in the cases I?ve dealt with) has communication ? letting the mortgage company know of our efforts and ensuring them the debt will be paid.
[uc%3fexport=download&id=1W3rEcChy0_E0cCfV5up02mkhwnL6eWIs&revid=0B4P5JoIHdbFaR29EbHlRWHFseFV5STZpSUVGeUNPWldkVDFVPQ]
Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Sharon Rutberg <sharon at salmonbaylaw.com>
Date: Thursday, October 5, 2023 at 11:09 AM
To: wsbapt at lists.wsbarppt.com <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] selling mortgaged real property in a probate
Hi, folks ?
We have a probate where the main asset is a piece of real property. The will directs that it be sold, and the PR is in the process of doing that. The property has two mortgages on it, but when it is sold there will be ample assets to pay those off and have some assets left for the beneficiaries. There is very little cash in the estate, so we have not attempted to make the monthly mortgage payments.
It took a while to get to market because a lot of clean up and an eviction were needed first. We have been subjected to a barrage of letters from Select Portfolio Servicing, demanding mortgage payments and threatening foreclosure. They seem immune to our multiple requests to hold off on these demands and threats while we have a reasonable to sell the property and pay off the loans.
Anyone out there have any advice about how to deal with this? Should we spend our scarce cash to bring the payments up to date? Is foreclosure really likely to happen anytime soon?
Many thanks,
Sharon
Sharon Rutberg, Attorney at Law
Salmon Bay Law Group, PLLC
1734 NW Market St.
Seattle, WA 98107
206-735-3177, ext. 1
sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>
Website: www.salmonbaylaw.com<http://www.salmonbaylaw.com/>
Washington State Bar #47055
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Message: 2
Date: Thu, 5 Oct 2023 20:49:50 +0000
From: Mark Anderson <marka at mbaesq.com>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Advances on Inheritance
Message-ID:
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Dear Listmates:
Husband and wife executed mutual wills under which a payout of $100,000 would be made to each of the husband's two sons, but only after both husband and wife had died. This is all the sons would be entitled to under the wills.
The husband died. Husband's sons want to be paid now, rather than wait until after Wife dies. Wife (my Client) says that sufficient funds exist to do this and is willing to make this happen.
My initial thought is to have my Client tender the money into my IOLTA trust account. I would then distribute the funds to the sons after having them each execute a Receipt and a Release of the Estate and the Personal Representative (whoever that may be) for the advance. This will require some "custom" drafting of the Receipt and Release in that my Client has not yet died and so does not have a probate estate. I will also recommend my Client that she update her existing estate planning documents to reflect the payments made and the release of any personal representative may be appointed for a probate estate.
I have got some questions about this.
1. Is this the best way to handle this advance?
2. What are the tax impacts, if any, for the Client?
3. What are the tax impacts, if any, for the recipients? (Just curious, in case they may want to reconsider their request to be paid now)
4. Are there any other considerations in which I should be aware in dealing with this situation?
In advance, thanks for your input on this.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St Ste 209 PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.
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Message: 3
Date: Thu, 5 Oct 2023 21:16:47 +0000
From: Dalynne Singleton <dalynne at glgmail.com>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Advances on Inheritance
Message-ID:
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Content-Type: text/plain; charset="us-ascii"
I'm thinking a little differently. If the wife wants to provide those monies now, then she should re-draft her Will and indicate the sons get nothing as they have been paid $100k.
Then, the sons sign a receipt for the gift of $100k each to the wife. Not sure if there would gift tax to benefit wife but you can check with CPA on that.
Dalynne Singleton
Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291
360.568.5065
360.568.8092 fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>
Website: www.glglawgroup.com<http://www.glglawgroup.com/>
Attorney/client meetings will be handled by teleconference or virtually whenever possible. If you would like to set a telephone conference, zoom, or in person meeting, please call or email one GLG paralegals selina at glgmail.com<mailto:selina at glgmail.com>, valerie at glgmail.com<mailto:valerie at glgmail.com> or barb at glgmail.com<mailto:barb at glgmail.com>. Gourley Law Group legal assistant can be reached at paige at glgmail.com<mailto:paige at glgmail.com>.
LICENSED IN WASHINGTON
IMPORTANT/CONFIDENTIAL: This e-mail message (and any attachments accompanying it) may contain confidential information, including information protected by attorney-client privilege. The information is intended only for the use of the intended recipient(s). Delivery of this message to anyone other than the intended recipient(s) is not intended to waive any privilege or otherwise detract from the confidentiality of the message. If you are not the intended recipient, or if this message has been addressed to you in error, do not read, disclose, reproduce, distribute, disseminate or otherwise use this transmission, rather, please promptly notify the sender by reply e-mail, and then destroy all copies of the message and its attachments, if any.
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Mark Anderson
Sent: Thursday, October 5, 2023 1:50 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Advances on Inheritance
Dear Listmates:
Husband and wife executed mutual wills under which a payout of $100,000 would be made to each of the husband's two sons, but only after both husband and wife had died. This is all the sons would be entitled to under the wills.
The husband died. Husband's sons want to be paid now, rather than wait until after Wife dies. Wife (my Client) says that sufficient funds exist to do this and is willing to make this happen.
My initial thought is to have my Client tender the money into my IOLTA trust account. I would then distribute the funds to the sons after having them each execute a Receipt and a Release of the Estate and the Personal Representative (whoever that may be) for the advance. This will require some "custom" drafting of the Receipt and Release in that my Client has not yet died and so does not have a probate estate. I will also recommend my Client that she update her existing estate planning documents to reflect the payments made and the release of any personal representative may be appointed for a probate estate.
I have got some questions about this.
1. Is this the best way to handle this advance?
2. What are the tax impacts, if any, for the Client?
3. What are the tax impacts, if any, for the recipients? (Just curious, in case they may want to reconsider their request to be paid now)
4. Are there any other considerations in which I should be aware in dealing with this situation?
In advance, thanks for your input on this.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St Ste 209 PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.
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Message: 4
Date: Thu, 5 Oct 2023 21:54:29 +0000
From: "Philip N. Jones" <pjones at duffykekel.com>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Advances on Inheritance
Message-ID:
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Content-Type: text/plain; charset="us-ascii"
I am assuming that these two wills do not create a contract to make a will. Although you describe them as mutual wills, I assume they create no obligation on the part of the wife. Oregon has a statute that says that mutual wills do not create any such obligation. I assume Washington has a similar statute.
Based on that assumption, I agree with Dalynne. This would be a gift from Wife to Sons. Not taxable to sons for federal income tax purposes. Wife would be required by federal law to file a federal gift tax return, although there would be no penalty for failing to do so as long as Wife's estate stays below the federal exemption (which, by the way, is scheduled to be cut in half in 2026). And Washington has no gift tax. And these gifts would not impact Wife's Washington estate tax, other than to reduce her net worth and thus reduce her Washington estate tax when she dies. The sons will receive the property at its current income tax basis in the hands of Wife. If they wait until Wife dies, they get a stepped-up basis. If cash is used, this is not a problem.
The receipts to be signed by the sons should state that they are entitled to nothing further. Wife should be released, and the release should inure to the benefit of her heirs, successors, assigns, and personal representatives.
Lots of moving parts. Nothing is simple anymore.
Phil Jones
Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Thursday, October 5, 2023 2:17 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Advances on Inheritance
I'm thinking a little differently. If the wife wants to provide those monies now, then she should re-draft her Will and indicate the sons get nothing as they have been paid $100k.
Then, the sons sign a receipt for the gift of $100k each to the wife. Not sure if there would gift tax to benefit wife but you can check with CPA on that.
Dalynne Singleton
Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291
360.568.5065
360.568.8092 fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>
Website: www.glglawgroup.com<http://www.glglawgroup.com/>
Attorney/client meetings will be handled by teleconference or virtually whenever possible. If you would like to set a telephone conference, zoom, or in person meeting, please call or email one GLG paralegals selina at glgmail.com<mailto:selina at glgmail.com>, valerie at glgmail.com<mailto:valerie at glgmail.com> or barb at glgmail.com<mailto:barb at glgmail.com>. Gourley Law Group legal assistant can be reached at paige at glgmail.com<mailto:paige at glgmail.com>.
LICENSED IN WASHINGTON
IMPORTANT/CONFIDENTIAL: This e-mail message (and any attachments accompanying it) may contain confidential information, including information protected by attorney-client privilege. The information is intended only for the use of the intended recipient(s). Delivery of this message to anyone other than the intended recipient(s) is not intended to waive any privilege or otherwise detract from the confidentiality of the message. If you are not the intended recipient, or if this message has been addressed to you in error, do not read, disclose, reproduce, distribute, disseminate or otherwise use this transmission, rather, please promptly notify the sender by reply e-mail, and then destroy all copies of the message and its attachments, if any.
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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 Mark Anderson
Sent: Thursday, October 5, 2023 1:50 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Advances on Inheritance
Dear Listmates:
Husband and wife executed mutual wills under which a payout of $100,000 would be made to each of the husband's two sons, but only after both husband and wife had died. This is all the sons would be entitled to under the wills.
The husband died. Husband's sons want to be paid now, rather than wait until after Wife dies. Wife (my Client) says that sufficient funds exist to do this and is willing to make this happen.
My initial thought is to have my Client tender the money into my IOLTA trust account. I would then distribute the funds to the sons after having them each execute a Receipt and a Release of the Estate and the Personal Representative (whoever that may be) for the advance. This will require some "custom" drafting of the Receipt and Release in that my Client has not yet died and so does not have a probate estate. I will also recommend my Client that she update her existing estate planning documents to reflect the payments made and the release of any personal representative may be appointed for a probate estate.
I have got some questions about this.
1. Is this the best way to handle this advance?
2. What are the tax impacts, if any, for the Client?
3. What are the tax impacts, if any, for the recipients? (Just curious, in case they may want to reconsider their request to be paid now)
4. Are there any other considerations in which I should be aware in dealing with this situation?
In advance, thanks for your input on this.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St Ste 209 PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.
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Message: 5
Date: Thu, 5 Oct 2023 14:58:13 -0700
From: Brent Williams-Ruth <brent at williams-ruthlaw.com>
To: "WSBA Probate & Trust Listserv" <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Advances on Inheritance
Message-ID:
<CAMMb1JMZBHNYj2k0AFqfu2hOQ+3gsA94e_Aj-6V=GVnz=V57ug at mail.gmail.com>
Content-Type: text/plain; charset="utf-8"
Is there an Estate opened for the Husband? If so, maybe a simple agreed TEDRA that says that they get $100k from the Husband's estate now - that way it would be tax free inheritance. Then absolutely have the Wife re-draft her Will with the specific statement that they had been provided for previously but due to early pay out they are not to take anything further.
Without knowing the totality of funds of the Estate, I just don't want the Wife to give up any of her lifetime gifting limits if there is a way that the funds could come from the Husband's estate. Again, making assumptions as to what his estate value was.
Good luck! I think that this is a great time for speciality drafting and finding a unique solution to issue if everyone is able to agree.
*Brent Williams-Ruth* (pronouns: he/him)
*Attorney-At-Law*
*Law Offices of Brent Williams-Ruth, **a division of BWR Consulting, PLLC*
*Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*
***EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: **PO BOX 3319; Federal Way, WA 98063 *
Office/Scheduling Phone: (253) 285-7751
Direct: (253) 285-7453
e-mail <Brent at Williams-RuthLaw.com> / website <http://www.williams-ruthlaw.com/> / facebook <http://www.facebook.com/bwrlaw> /
On Thu, Oct 5, 2023 at 2:31?PM Dalynne Singleton <dalynne at glgmail.com>
wrote:
> I?m thinking a little differently. If the wife wants to provide those
> monies now, then she should re-draft her Will and indicate the sons
> get nothing as they have been paid $100k.
>
> Then, the sons sign a receipt for the gift of $100k each to the wife.
> Not sure if there would gift tax to benefit wife but you can check
> with CPA on that.
>
>
>
> *Dalynne Singleton*
>
> *Gourley Law Group*
>
> *Snohomish Escrow*
>
> *The Exchange Connection*
>
> *1002 10th Street / PO Box 1091*
>
> *Snohomish, WA 98291*
>
> *360.568.5065*
>
> *360.568.8092 fax*
>
> dalynne at glgmail.com
>
> *Website: *www.glglawgroup.com
>
> Attorney/client meetings will be handled by teleconference or
> virtually whenever possible. If you would like to set a telephone
> conference, zoom, or in person meeting, please call or email one GLG
> paralegals selina at glgmail.com, valerie at glgmail.com or
> barb at glgmail.com. Gourley Law Group legal assistant can be reached at paige at glgmail.com.
>
>
>
> *LICENSED IN WASHINGTON*
>
> IMPORTANT/CONFIDENTIAL: This e-mail message (and any attachments
> accompanying it) may contain confidential information, including
> information protected by attorney-client privilege. The information is
> intended only for the use of the intended recipient(s). Delivery of
> this message to anyone other than the intended recipient(s) is not
> intended to waive any privilege or otherwise detract from the
> confidentiality of the message. If you are not the intended
> recipient, or if this message has been addressed to you in error, do
> not read, disclose, reproduce, distribute, disseminate or otherwise
> use this transmission, rather, please promptly notify the sender by
> reply e-mail, and then destroy all copies of the message and its attachments, if any.
>
>
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> *On Behalf Of *Mark Anderson
> *Sent:* Thursday, October 5, 2023 1:50 PM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] Advances on Inheritance
>
>
>
> Dear Listmates:
>
>
>
> Husband and wife executed mutual wills under which a payout of
> $100,000 would be made to each of the husband's two sons, but only
> after both husband and wife had died. This is all the sons would be
> entitled to under the wills.
>
>
>
> The husband died. Husband's sons want to be paid now, rather than
> wait until after Wife dies. Wife (my Client) says that sufficient
> funds exist to do this and is willing to make this happen.
>
>
>
> My initial thought is to have my Client tender the money into my IOLTA
> trust account. I would then distribute the funds to the sons after
> having them each execute a Receipt and a Release of the Estate and the
> Personal Representative (whoever that may be) for the advance. This
> will require some "custom" drafting of the Receipt and Release in that
> my Client has not yet died and so does not have a probate estate. I
> will also recommend my Client that she update her existing estate
> planning documents to reflect the payments made and the release of any
> personal representative may be appointed for a probate estate.
>
>
>
> I have got some questions about this.
>
>
>
> 1. Is this the best way to handle this advance?
> 2. What are the tax impacts, if any, for the Client?
> 3. What are the tax impacts, if any, for the recipients? (Just
> curious, in case they may want to reconsider their request to be paid now)
> 4. Are there any other considerations in which I should be aware in
> dealing with this situation?
>
>
>
> In advance, thanks for your input on this.
>
>
>
>
> *Mark B. Anderson *ANDERSON LAW FIRM PLLC
> 821 Dock St Ste 209 PMB 4-12
> Tacoma, Washington 98402
> +1 253-327-1750
> +1 253-327-1751 (fax)
> marka at mbaesq.com
> www.mbaesq.com
>
>
> *CONFIDENTIALITY NOTICE *This transmission is confidential and is
> intended solely for the use of the individual named recipient. It may
> be protected by the attorney-client privilege, work product doctrine,
> or other confidentiality protection. If you are not the intended
> recipient, or the person responsible to deliver it to the intended
> recipient, be advised that any dissemination, distribution, or copying
> of this communication is prohibited. If you have received this
> transmission in error, please immediately notify the sender via e-mail
> or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.
> ***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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Message: 6
Date: Thu, 5 Oct 2023 22:05:15 +0000
From: Dalynne Singleton <dalynne at glgmail.com>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Selling mortgaged real property in a probate
Message-ID:
<BY5PR12MB5542A32CCFF36B41BE92FE2CA5CAA at BY5PR12MB5542.namprd12.prod.outlook.com>
Content-Type: text/plain; charset="us-ascii"
I agree with the responses provided but add this - I was able to get an injunction against a foreclosure when the lender refused to allow time to open the probate, having the hearing, give proper notice and get Letters. It was a newly invented wheel for me but I made it work.
Dalynne Singleton
Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291
360.568.5065
360.568.8092 fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>
Website: www.glglawgroup.com<http://www.glglawgroup.com/>
Attorney/client meetings will be handled by teleconference or virtually whenever possible. If you would like to set a telephone conference, zoom, or in person meeting, please call or email one GLG paralegals selina at glgmail.com<mailto:selina at glgmail.com>, valerie at glgmail.com<mailto:valerie at glgmail.com> or barb at glgmail.com<mailto:barb at glgmail.com>. Gourley Law Group legal assistant can be reached at paige at glgmail.com<mailto:paige at glgmail.com>.
LICENSED IN WASHINGTON
IMPORTANT/CONFIDENTIAL: This e-mail message (and any attachments accompanying it) may contain confidential information, including information protected by attorney-client privilege. The information is intended only for the use of the intended recipient(s). Delivery of this message to anyone other than the intended recipient(s) is not intended to waive any privilege or otherwise detract from the confidentiality of the message. If you are not the intended recipient, or if this message has been addressed to you in error, do not read, disclose, reproduce, distribute, disseminate or otherwise use this transmission, rather, please promptly notify the sender by reply e-mail, and then destroy all copies of the message and its attachments, if any.
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Sharon Rutberg
Sent: Thursday, October 5, 2023 11:06 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] selling mortgaged real property in a probate
Hi, folks -
We have a probate where the main asset is a piece of real property. The will directs that it be sold, and the PR is in the process of doing that. The property has two mortgages on it, but when it is sold there will be ample assets to pay those off and have some assets left for the beneficiaries. There is very little cash in the estate, so we have not attempted to make the monthly mortgage payments.
It took a while to get to market because a lot of clean up and an eviction were needed first. We have been subjected to a barrage of letters from Select Portfolio Servicing, demanding mortgage payments and threatening foreclosure. They seem immune to our multiple requests to hold off on these demands and threats while we have a reasonable to sell the property and pay off the loans.
Anyone out there have any advice about how to deal with this? Should we spend our scarce cash to bring the payments up to date? Is foreclosure really likely to happen anytime soon?
Many thanks,
Sharon
Sharon Rutberg, Attorney at Law
Salmon Bay Law Group, PLLC
1734 NW Market St.
Seattle, WA 98107
206-735-3177, ext. 1
sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>
Website: www.salmonbaylaw.com<http://www.salmonbaylaw.com/>
Washington State Bar #47055
NOTICES
The contents of this message and any attachments may be protected by the attorney-client privilege, work product doctrine, and/or other applicable protections. If you are not the intended recipient or have received this message in error, please notify the sender and promptly delete the message. Thank you for your assistance.
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Message: 7
Date: Thu, 5 Oct 2023 22:10:49 +0000
From: Joshua McKarcher <josh at mckarcherlaw.com>
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Advances on Inheritance
Message-ID:
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Content-Type: text/plain; charset="utf-8"
I assume you have probated husband?s will, such as to change title to real property or otherwise; or else have delivered the original to the court for filing.
If so, you have dad?s case number to reference in a simple receipt but just a receipt of a lifetime gift from her because they took nothing at the time of their father?s death . . . as I agree fully with Dalynne, and suggest skipping the whole ?receipt and release from her future estate? business.
Instead consider:
-- the amount over $17,000 is a reportable lifetime gift from her to them, period;
-- memorialize the receipt of the $100k checks from wife (no IOLTA needed; she will have check images on her statement or can be sure she prints them out) in exchange for the information she will need to file a gift tax return (name, address, SSN, etc.) and releases of her entirely [see Phil?s intervening email re heirs, estate, etc.] (but not in the form of an advance ?standard probate receipt/release? for use in her estate as though they will be devisees entitled to notice, etc.);
-- if you probated husband?s will and their interest is pending still, do get ?standard probate receipts/releases? from them as to his probate matter, unless the 4 months dispute period has passed after they received written notice (proved by affidavit filed in their father?s probate matter), and you confirm that they have no remaining interest if the will left them nothing anyhow;
-- change her will immediately/simultaneously to omit them completely ? then they are not notice parties at her death ? eliminate any need at all for ?standard probate receipts/releases? for her;
-- wife needs to file a gift tax return with her 2023 return next year; doing so is smart for lots of reasons (even if not required, in my view, but not worth fighting over if her estate isn?t (going to be ?) taxable), and her CPA can do that easily with her 1040.
All very worth it for getting these two non-heirs-at-law out of her way.
Optional: in her new will, mention them if you feel compelled but only in a way that does NOT make them notice parties at her will?s probate. Something like the following could work ? it need not recite chapter and verse what the release, cancelled checks, gift return all prove without disclosing it all to the world in her will:
I have intentionally omitted my deceased spouse?s sons, Name and Name2. I completed lifetime gifts to them after their father died.
Good luck! Best, Josh
Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com<mailto:josh at mckarcherlaw.com>
www.mckarcherlaw.com<http://www.mckarcherlaw.com/>
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Thursday, October 5, 2023 2:17 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Advances on Inheritance
I?m thinking a little differently. If the wife wants to provide those monies now, then she should re-draft her Will and indicate the sons get nothing as they have been paid $100k.
Then, the sons sign a receipt for the gift of $100k each to the wife. Not sure if there would gift tax to benefit wife but you can check with CPA on that.
Dalynne Singleton
Gourley Law Group
Snohomish Escrow
The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291
360.568.5065
360.568.8092 fax
dalynne at glgmail.com<mailto:dalynne at glgmail.com>
Website: www.glglawgroup.com<http://www.glglawgroup.com/>
Attorney/client meetings will be handled by teleconference or virtually whenever possible. If you would like to set a telephone conference, zoom, or in person meeting, please call or email one GLG paralegals selina at glgmail.com<mailto:selina at glgmail.com>, valerie at glgmail.com<mailto:valerie at glgmail.com> or barb at glgmail.com<mailto:barb at glgmail.com>. Gourley Law Group legal assistant can be reached at paige at glgmail.com<mailto:paige at glgmail.com>.
LICENSED IN WASHINGTON
IMPORTANT/CONFIDENTIAL: This e-mail message (and any attachments accompanying it) may contain confidential information, including information protected by attorney-client privilege. The information is intended only for the use of the intended recipient(s). Delivery of this message to anyone other than the intended recipient(s) is not intended to waive any privilege or otherwise detract from the confidentiality of the message. If you are not the intended recipient, or if this message has been addressed to you in error, do not read, disclose, reproduce, distribute, disseminate or otherwise use this transmission, rather, please promptly notify the sender by reply e-mail, and then destroy all copies of the message and its attachments, if any.
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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 Mark Anderson
Sent: Thursday, October 5, 2023 1:50 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Advances on Inheritance
Dear Listmates:
Husband and wife executed mutual wills under which a payout of $100,000 would be made to each of the husband's two sons, but only after both husband and wife had died. This is all the sons would be entitled to under the wills.
The husband died. Husband's sons want to be paid now, rather than wait until after Wife dies. Wife (my Client) says that sufficient funds exist to do this and is willing to make this happen.
My initial thought is to have my Client tender the money into my IOLTA trust account. I would then distribute the funds to the sons after having them each execute a Receipt and a Release of the Estate and the Personal Representative (whoever that may be) for the advance. This will require some "custom" drafting of the Receipt and Release in that my Client has not yet died and so does not have a probate estate. I will also recommend my Client that she update her existing estate planning documents to reflect the payments made and the release of any personal representative may be appointed for a probate estate.
I have got some questions about this.
1. Is this the best way to handle this advance?
2. What are the tax impacts, if any, for the Client?
3. What are the tax impacts, if any, for the recipients? (Just curious, in case they may want to reconsider their request to be paid now)
4. Are there any other considerations in which I should be aware in dealing with this situation?
In advance, thanks for your input on this.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St Ste 209 PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
CONFIDENTIALITY NOTICE
This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.
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