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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">PR can resign but remains liable unless "discharged" by the court, after submitting an accounting.
<a href="http://app.leg.wa.gov/rcw/default.aspx?cite=11.28.290">RCW 11.28.290</a>. So the PR can't just walk away without accounting for the assets and making sure they are in a proper person's hands. It'd be a Motion to Discharge Resigning PR (and appoint
successor PR?) and Approving Accounting.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">BUT--PR and PR's attorney can most likely take that entire $2500 - $4000 that could come from sale, as PR fees and attorney fees, and creditors will get zip.
Costs of administration are priority claims against the Estate, well above general creditors.
<a href="http://app.leg.wa.gov/rcw/default.aspx?cite=11.48.210">RCW 11.48.210</a>,
<a href="http://app.leg.wa.gov/rcw/default.aspx?cite=11.76.110">RCW 11.76.110</a> preamble sentence. (Caveat: Federal tax debt and Medicaid recovery technically defeat even administrative costs, though in practice the IRS usually doesn't push it that far.)
In that scenario, I have sometimes been successful in contacting the creditors, explaining the situation, and getting all creditors to withdraw their claims, so I can maintain Nonintervention Powers. Sometimes not successful, but it does work more often than
not in my experience. I am slow to file a Notice of Insolvency until I have contacted the creditors and seen if anything can be worked out.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">You also mention that PR lives there with "beneficiary's approval." The Beneficiary is usually the mortgage lender, but your post implies they are different?
If this is a private loan, maybe there is more opportunity to negotiate a short sale and extract a bit more money from the house, at least to get fees and administrative costs paid in full. Harder to do with institutional lenders, but still possible. But when
confronted with a choice between taking a property back versus getting, say, 90% or 95% of their loan back, you might be able to convince them.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">A Deed in Lieu might work, but it sounds like the Estate could be giving up some money by doing it, if it's truly likely to pay off in full via a sale. Instead,
on these limited facts, I am thinking that listing for sale and negotiating a short sale with the lender could work better.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">If you represent the PR in her fiduciary capacity, then typically best not to represent her in her individual capacity at the same time. If there is no realistic
conflict of interest it can be done, but best to avoid. Sounds like a potential conflict here, so best to pick a side--advise on her fiduciary duties, or advise on her personal interests.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Also, is PR an actual tenant under a rental agreement, or just occupying? Tenants have some rights in a foreclosure scenario.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">1320 University St<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Seattle WA 98101-2837<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jayne Gilbert<br>
<b>Sent:</b> Wednesday, May 27, 2015 11:21 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] Estate Became Insolvent-RP Only Asset-Just above Water<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">I posted something similar to this last week and only got one response. Dear<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">listserv people if you have any thoughts, please respond:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">QP: There is not enough equity to pay General Creditors. PR will be filing a Notice of <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Apparent Insolvency. After the mortgage has been paid and the cost of a sale has<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">been paid, there will be between $2,500-$4,000.00 left for Creditors at best<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">When the Creditors have all received Notice of Insolvency and Notice is Filed with<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">the Court can the PR resign, quit or otherwise walk away from the Probate? If so<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">what kind of Motion does the PR bring?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Or does the PR simply inform the Creditors of her intent to "walk away" or does <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">it require a Court Order?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Would your answer change if the PR lives in the house at present with the<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Beneficiary's consent? And the mortgage Company is initiating Foreclosure?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">The PR is not a Beneficiary or an heir<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Would a Deed in Lieu for the Benefit of the Estate be a possible answer or<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">does that conflict with my duties as attorney to the PR and attorney to the<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">person who happens to be the PR?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">The PR is not a beneficiary or heir.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">This is my first and hopefully, last Insolvent Estate.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">Thank you very much for reading this request for guidance. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:9.5pt">I do appreciate it<o:p></o:p></span></p>
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<p class="MsoNormal">-- <o:p></o:p></p>
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<p class="MsoNormal">*************************************************<o:p></o:p></p>
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<p class="MsoNormal">Jayne Marsh Gilbert<o:p></o:p></p>
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<p class="MsoNormal">Gilbert and Gilbert Lawyers, PS<o:p></o:p></p>
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<p class="MsoNormal">(360) 336-9515<o:p></o:p></p>
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<p class="MsoNormal">*************************************************<o:p></o:p></p>
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