[WSBAPT] Nonprobate NTC Question

[Elizabeth Bateman]

Generally credit card debt taken out during the marriage is community debt, in which case the entire community property estate (including survivor’s half) can be used to satisfy the debt.  See RCW 11.10.030.  Joint bank accounts can absolutely be subject to creditors (see RCW 11.18.200), though the life insurance would be exempt.  I suppose if the credit cards were taken out without her knowledge and were used solely for separate expenses and not used for community expenses you could make the argument that it is separate debt, but the decedent’s portion of the community property is still reachable.  I personally would probably file a probate, provide/publish notice to creditors, and petition the court for an award of family support/award in lieu of homestead under RCW 11.54.010.

Elizabeth G. Bateman
Attorney
Admitted in Washington and Minnesota
Bateman Law Group, PLLC
900 SW 16th Street, Suite 120
Renton, WA 98057
Office: (206) 224-0900
Cell: (425) 444-9946
Website: www.batemanlawgroup.com<http://www.batemanlawgroup.com/>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Kendel Froese
Sent: Tuesday, September 26, 2023 1:29 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBAPT] Nonprobate NTC Question

Hi all:

A potential client's husband recently passed away. They don't own any real estate, any banking assets were owned by them jointly, and their children are children in common. The husband had a life insurance policy on which he designated the surviving spouse as beneficiary. The wife found about $20k of credit card debt that the husband took out that she was previously unaware of. There are also some medical bills from the decedent's illness. A couple questions:

(1) If the decedent and the surviving spouse had joint banking, are half of those assets available to his creditors?

(2) I don't see a reason to open probate, because there are no assets that need to be moved from the decedent to the surviving spouse. Is this a situation in which a Nonprobate Notice to Creditors might be a good idea?

(3) But, if life insurance is the only asset (assuming a "no" answer to my Q#1 above), is a Nonprobate Notice to Creditors needed? I understand wanting to cut off any claims, but it seems a little strange to publish a notice while knowing all claims will be rejected.

Thank you in advance for your wisdom!

Warmly,
Kendel

--

Kendel Froese

Attorney, Froese Law PLLC<https://www.froeselawpllc.com>

203 N. Washington | Suite 200 | Spokane, WA | 99201

509.514.5317 (Call & Text)

Instantly schedule an appointment with me here<https://calendly.com/froeselawpllc>!

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