[WSBAPT] SOL against PR where PR is never discharged, but then dies, and then 2 years pass?

[Sarah McCarthy]

Esteemed section members:

I've got a deceased PR who apparently didn't handle things correctly in a
different estate - lots of creditor claims were filed that were apparently
never dealt with, and that other estate, in a different county, is STILL
OPEN -- the court never made a CR 41 motion to close the estate for want of
prosecution, even though the last court file activity was several years
back.

The PR has now died, more than 2 years ago.  Now an estate is open for the
PR's own estate.  I'm trying to reassure myself that there is no
possibility that the claimants from this PRIOR estate could still have any
ability to make a claim against the PR's own estate.

1) Are an estate's alleged creditor's remedies for payment of debts owed by
the decedent *LIMITED *to the statutory remedies and procedures set forth
in RCW 11.40, *OR*, if the creditor has procedurally complied with RCW
11.40, and then the PR of the estate doesn't properly handle creditor
claims, does the alleged creditor then *ALSO *have the right to assert a
claim against the PR for breach of fiduciary duty - which has a longer
statute of limitations, needing to be filed at any time before the PR is
discharged? (RCW 11.96A.070).  (I am hoping that the creditor is limited to
the statutory procedures, and not this longer statute of limitations.)

2) Even if the answer to this is that the creditor DOES have this
additional remedy, making a claim against the PR for breach of fiduciary
duty, would that potential claim against the PR then be subject to the
general 2-year creditor claim period against the PR's own estate,  RCW
11.40.020(1)(b)(ii), if the PR has later died, and more than 2 years have
passed?  OR, would that potential claim against the PR be a remedy
available at any time prior to the discharge of the PR of the first estate,
according to the SOL for claims against PRs set forth in *RCW 11.96A.070?
(I'm hoping that the 2 years would be a bar.)*

3)  If the creditor gets to file their claim against the PR for breach of
fiduciary anytime up to discharge of the PR under *RCW 11.96A.070, does
this claim expire based on the fact that the PR has now died?   *By my
reading of RCW 11.68.060, the death of the PR does not serve to
"automatically" discharge the PR - there has to be other action taken to
carry out the "discharge."   (I'm hoping that the death of the PR would
have the effect of switching the avenue for bringing a claim against the PR
over into the PR's own separate estate, and thus subject to the 2-year
period on claims.)

If you want more detail:
JANE died 20+ years ago.
Spouse JOE appointed as PR  20+  years  ago.
JOE is also 100% beneficiary of JANE's estate.
20+ creditor claims were filed against JANE's estate, all filed 20+ years
ago.
JOE never filed anything with the court to allow or reject any of the
claims.
None of the creditors against JANE's estate ever took action to pursue the
claims further.
Given the 20+ year passage of time, it seems clear that the SOL on all
creditor claims has now passed, since they took no further action to pursue
their claims beyond the initial filings. See In re Estate of Henington, 331
P.3d 112, 115 (Wash. App. 2014).
JOE then died.
JANE's estate is still open with the court.
Nothing was filed with the court in JANE's estate to notify anyone that JOE
has died, nor to appoint a successsor PR of JANE's estate.
JOE's estate has now been opened, in a different county than JANE's estate.
More than 2 years have now passed since JOE's death.

Am I right that the creditors of JANE's estate don't need to be given
further consideration by the PR of JOE's estate, given that a) they didn't
do anything to further pursue their claims in JANE's estate, after JOE
failed to respond to their initial claims, and b) they didn't assert a
creditor claim against JOE's estate within the 2 years?

I *think* that the creditors' only legal remedies are the procedures set
forth in RCW 11.40, and that if they didn't pursue those further, then they
are now out of luck, and the SOLs on their creditor claims have now long
expired given the 20+ year passage of time.   See In re Estate of
Henington, 331 P.3d 112, 115 (Wash. App. 2014) (discussing RCW
11.40.051(2): "We hold that the mere filing of a creditor's claim in a
probate case, without any further action by the claimant or the PR, does
not toll the statute of limitations.").       So, even if a successor PR
for JANE's estate were to be appointed, those creditors would be out of
luck.

I also *think* that, even if the creditors did have some claim against the
PR JOE for breach of his fiduciary duty in managing JANE's estate, such as
a claim that he didn't correctly deal with JANE's creditors, the fact that
it's now been 2+ years since JOE's death, the creditors have lost their
ability to assert a claim against JOE's own estate.  RCW
11.40.020(1)(b)(ii).

Thanks for any insight!

Sarah

*Sarah O’Farrell McCarthy*


*(Pronouns: she / her)*Attorney*, Partner | Kelly, Arndt & Walker, Attorneys
at Law, PLLP
P.O. Box 290 | 6443 Harding Avenue | Clinton, WA  98236

(Located on Whidbey Island, Island County, Washington)

* Licensed to practice in Washington (active) and California (inactive)
Phone: (360) 341-1515 | Fax: (360) 341-3272
sarah at kawlawyers.com | www.kawlawyers.com

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