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<DIV>Sorry, 1096 is the transmittal form, the form the bank sends being
1099.</DIV>
<DIV> </DIV>
<DIV>
<DIV
style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'></DIV>
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<DIV style="BACKGROUND: #f5f5f5">
<DIV style="font-color: black"><B>From:</B> <A title=paulnnepa@gmail.com
href="mailto:paulnnepa@gmail.com">Paul H. Grant</A> </DIV>
<DIV><B>Sent:</B> Wednesday, May 27, 2015 6:33 AM</DIV>
<DIV><B>To:</B> <A title=wsbapt@lists.wsbarppt.com
href="mailto:wsbapt@lists.wsbarppt.com">WSBA Probate & Trust Listserv</A>
</DIV>
<DIV><B>Subject:</B> Re: [WSBAPT] probate question - single spouse on
mortgage</DIV></DIV></DIV>
<DIV> </DIV></DIV>
<DIV
style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>
<DIV>I disagree that it is as simple as the mortgage payor can take the
deduction. Someone must be an owner or equitable owner. Look at CFR
1.163-1(b)<BR><BR>Sent from my iPhone ~ Paul H. Grant</DIV>
<DIV><BR>On May 26, 2015, at 12:25 PM, H Henson <<A
href="mailto:hhensoncpa@gmail.com">hhensoncpa@gmail.com</A>>
wrote:<BR><BR></DIV>
<BLOCKQUOTE type="cite">
<DIV>
<DIV>Marcia,</DIV>
<DIV> </DIV>
<DIV>
<DIV>if your client is paying the mortgage, your client should be able to
claim the deduction. I've dealt with several instances where the tax reporting
(1099, 1098, etc) was in the name of another person, etc., but was paid by
someone else. In general, whoever was paying was able to take the deduction.
</DIV>
<DIV> </DIV>
<DIV>but it depends on the facts and circumstances. Clunky? possibly,
yes.</DIV>
<DIV>Will it require responding to IRS letters? most likely; In my experience,
most letters sent <U>with</U> returns are ignored. letters sent in response to
IRS letters actually get read. You are on the right track to claim the
deduction for your client.</DIV></DIV>
<DIV> </DIV>
<DIV>To Tom's point - if the property is characterized as a rental /
investment property, there is a different method to report; or it could
alternately be claimed as an interest deduction related to a second property.
Depends on the client's situation.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>
<DIV><STRONG><FONT face="arial black,sans-serif">Holly Henson,
CPA</FONT></STRONG></DIV>
<DIV><STRONG><FONT face="Arial Black">Attorney at law</FONT></STRONG></DIV>
<DIV><EM><FONT face="times new roman,serif">PO Box 1555</FONT></EM></DIV>
<DIV><EM><FONT face="times new roman,serif">Bellevue, WA
98009</FONT></EM></DIV>
<DIV><EM><FONT face="times new roman,serif">fax/phone <SPAN
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<DIV><BR> </DIV>
<DIV class=gmail_quote>On Tue, May 26, 2015 at 9:28 AM, Tom J. Westbrook <SPAN
dir=ltr><<A href="mailto:tjw@w3net.net"
target=_blank>tjw@w3net.net</A>></SPAN> wrote:<BR>
<BLOCKQUOTE class=gmail_quote
style="PADDING-LEFT: 1ex; MARGIN: 0px 0px 0px 0.8ex; BORDER-LEFT: rgb(204,204,204) 1px solid">
<DIV lang=EN-US vlink="purple" link="blue">
<DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Hi
Marcia,<U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>As
always, Heather has great comments and advice re: the lender.
<U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>On
the interest rates, if the brother isn’t living in the home, then it is not
his personal residence. Check with a CPA, but it is my understanding there
are differences in how interest is handled between residential property and
commercial property from a tax reporting standpoint if the brother is using
the home as a rental. Active versus passive loss rules will likely be
involved as well. I can’t cite you to the IRS section, but have had
experience in the past where a CPA did advise that the heir could take the
interest deduction as long as the heir is the one paying the payments. My
recollection (which is sometimes questionable) was the CPA advised that
someone is entitled to the interest deduction and if the heir is making the
payments and has made a defacto assumption of the loan, then he/she should
be entitled to take the deduction whether the lender will approve an actual
assumption or not. <U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'><U></U><U></U></SPAN> </P>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Regards,<U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>
Tom<U></U><U></U></SPAN></P></DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'><U></U><U></U></SPAN> </P>
<DIV>
<DIV
style="BORDER-TOP: rgb(181,196,223) 1pt solid; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 3pt; PADDING-LEFT: 0in; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">
<P class=MsoNormal><B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'>From:</SPAN></B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'> <A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>wsbapt-bounces@lists.wsbarppt.com</A> [mailto:<A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>wsbapt-bounces@lists.wsbarppt.com</A>] <B>On Behalf Of
</B>Marcia Mellinger<BR><B>Sent:</B> Monday, May 25, 2015 1:31 PM</SPAN></P>
<DIV>
<DIV class=h5><BR><B>To:</B> WSBA Probate & Trust
Listserv<BR><B>Subject:</B> Re: [WSBAPT] probate question - single spouse on
mortgage<U></U><U></U></DIV></DIV></DIV></DIV>
<DIV>
<DIV class=h5>
<P class=MsoNormal><U></U><U></U> </P>
<DIV>
<P class=MsoNormal style="MARGIN-BOTTOM: 12pt"><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'>Dear Tom, To fill in some
details--<BR><BR>My client is the surviving brother of the deceased, and the
PR is the surviving wife. The property was purchased before their
brief marriage, note and DOT signed only by the deceased. The
surviving spouse has given up her interest in the property, so not
interested in financing it. I have asked my client to check into refi
options, but I think the rate was so low, he does not want to mess with
it.<BR><BR>Hope someone has some ideas about reporting the mortgage interest
deduction, and options for dealing with the creditor's claim from the
lender. (I have not seen a mortgage lender file a creditor's claim
before this).<BR><BR>Best, Marcia<U></U><U></U></SPAN></P>
<DIV>
<DIV class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'>
<HR align=center SIZE=3 width="100%">
</SPAN></DIV>
<P class=MsoNormal style="MARGIN-BOTTOM: 12pt"><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'>Date: Mon, 25 May 2015 12:40:51
-0700<BR>From: <A href="mailto:tjw@w3net.net"
target=_blank>tjw@w3net.net</A><BR>To: <A
href="mailto:wsbapt@lists.wsbarppt.com"
target=_blank>wsbapt@lists.wsbarppt.com</A><BR>Subject: Re: [WSBAPT] probate
question - single spouse on mortgage<U></U><U></U></SPAN></P>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Marcia,
your facts are pretty Spartan so hard to give a considered
response.</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Can
your PR client get financing to pay off the loan? </SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Is
the heir a spouse or other beneficiary?</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>If
a spouse, is there anywhere in the loan documents that make the spouse
responsible for any of the payments on the promissory note?</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Sincerely,</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Tom</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Thomas
J. Westbrook</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Attorney
at Law</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: rgb(68,84,106)'><image001.jpg></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
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style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Rodgers,
Kee & Card</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>324
West Bay Drive NW, Suite 201</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Olympia,
Washington 98502</SPAN><SPAN
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style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Skype:
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from your electronic files.</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<DIV>
<DIV
style="BORDER-TOP: rgb(181,196,223) 1pt solid; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 3pt; PADDING-LEFT: 0in; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">
<P class=MsoNormal><B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'>From:</SPAN></B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'> <A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>wsbapt-bounces@lists.wsbarppt.com</A> [<A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>mailto:wsbapt-bounces@lists.wsbarppt.com</A>] <B>On Behalf Of
</B>Marcia Mellinger<BR><B>Sent:</B> Sunday, May 24, 2015 9:25
PM<BR><B>To:</B> WSBA Probate & Trust Listserv<BR><B>Subject:</B> Re:
[WSBAPT] probate question - single spouse on mortgage</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV></DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<DIV>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>I am
currently dealing with this and Garn-St Germain appears the lender may not
assert its due on sale clause, but the lender also will not allow an
assumption, so the interest deduction is not under the name of the
inheritor. We are dealing with this through letters filed with return,
etc, but it is kind of clunky. <BR><BR>Also the lender filed a
creditor's claim in the probate and so the probate cannot be
closed.<BR><BR>Don't know if anyone knows of any work arounds. Best,
Marcia<U></U><U></U></SPAN></P>
<DIV>
<DIV class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'>
<HR align=center SIZE=3 width="100%">
</SPAN></DIV>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>Date:
Sun, 24 May 2015 15:06:28 -0700<BR>From: <A href="mailto:tjw@w3net.net"
target=_blank>tjw@w3net.net</A><BR>To: <A
href="mailto:wsbapt@lists.wsbarppt.com"
target=_blank>wsbapt@lists.wsbarppt.com</A><BR>Subject: Re: [WSBAPT] probate
question - single spouse on mortgage<U></U><U></U></SPAN></P>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Hello
Sharon,</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>My
response is based upon my experience and is not intended to be a complete
legal analysis of your client’s situation. Others may have a more detailed
legal opinion. The starting point is as MK pointed out.</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>In
my experience, as long as the lender (beneficiary) is getting paid they are
happy and do nothing. If H wants to keep the house, then he can either
continue to make payments or he can refinance if that is more beneficial for
him based on interest rates today (and points and closing costs) versus
whatever interest rate is on the loan now. </SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Whether
you give probate notice to creditors to the lender or not is really
immaterial since the deed of trust will remain in first position anyway as
it is secured debt. In other words, you can’t get rid of the debt by giving
them notice and hoping they don’t file a creditor’s claim; from a practical
standpoint that really only applies to non-secured debt of the decedent or
other secured debt that is not covered by any equity in the home and H is
thinking about selling for less than the total secured debts owed – in that
case the second or third position lender may elect to collect in a
non-judicial proceeding. If you have given notice to them and they don’t
file their creditor’s claim timely, then any subsequent attempt to collect
may be time barred if it is only against the decedent’s estate. If H is also
on the second or third debt (if there is additional secured debt), then any
bar to a later claim by that lender will not arise as to his community
portion of the debt since his estate is not part of the probate.</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>As
a side note, if the home is “underwater” from an equity standpoint and H
does not want to keep the home, then when H is appointed PR with Letters
Testamentary, he can try to work out a short sale of deed in lieu with the
lender and move out after that all is done. In that case, you should
consider if it is advisable for H to sink additional funds into the loan
payments or discontinue making loan payments since most of the payment is
interest and not reducing principal very much. When and if that decision is
made is fairly strategic and should be made based upon a number of
considerations that are very dynamic depending upon the totality of
circumstances that I won’t go into with this response. </SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Sincerely,</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Tom</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Thomas
J. Westbrook</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Attorney
at Law</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
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<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: rgb(68,84,106)'><image001.jpg></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
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<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Rodgers,
Kee & Card</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>324
West Bay Drive NW, Suite 201</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Olympia,
Washington 98502</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Phone:
<A href="tel:360-352-8311" target=_blank
value="+13603528311">360-352-8311</A></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
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style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Facsimile:
<A href="tel:360-352-8501" target=_blank
value="+13603528501">360-352-8501</A></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Email:
<A href="mailto:tjw@buddbaylaw.com"
target=_blank>tjw@buddbaylaw.com</A></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Arial","sans-serif"; COLOR: rgb(68,84,106)'>Skype:
thomas.westbrook</SPAN><SPAN
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<DIV
style="BORDER-TOP: rgb(181,196,223) 1pt solid; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 3pt; PADDING-LEFT: 0in; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">
<P class=MsoNormal><B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'>From:</SPAN></B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'> <A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>wsbapt-bounces@lists.wsbarppt.com</A> [<A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>mailto:wsbapt-bounces@lists.wsbarppt.com</A>] <B>On Behalf Of
</B>Sharon Rutberg<BR><B>Sent:</B> Sunday, May 24, 2015 2:08
PM<BR><B>To:</B> 'WSBA Probate & Trust Listserv'<BR><B>Subject:</B> Re:
[WSBAPT] probate question - single spouse on mortgage</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV></DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><A name=14d910cdbf19fab4__MailEndCompose><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: rgb(31,73,125)'>Thank
you – this is very helpful, and it makes sense. I wonder if anyone has seen
any problems arise in practice. </SPAN></A><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: rgb(31,73,125)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Sharon
C. Rutberg</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Attorney
at Law</SPAN><SPAN
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<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>1718
NW 56<SUP>th</SUP> Street, Suite 304</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Seattle,
WA 98107</SPAN><SPAN
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href="http://www.sharonrutberglaw.com" target=_blank><SPAN
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<P class=MsoNormal><B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'>From:</SPAN></B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'> <A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>wsbapt-bounces@lists.wsbarppt.com</A> [<A
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
target=_blank>mailto:wsbapt-bounces@lists.wsbarppt.com</A>] <B>On Behalf Of
</B>MK Henderson<BR><B>Sent:</B> Sunday, May 24, 2015 11:50 AM<BR><B>To:</B>
WSBA Probate & Trust Listserv<BR><B>Subject:</B> Re: [WSBAPT] probate
question - single spouse on mortgage</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<DIV>
<DIV>
<H1><SPAN
style='FONT-SIZE: 18pt; FONT-FAMILY: "Georgia","serif"; FONT-WEIGHT: normal; COLOR: rgb(179,27,27)'>Look
at the Garn-St Germain Act following.</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></H1>
<H1><SPAN
style='FONT-SIZE: 18pt; FONT-FAMILY: "Georgia","serif"; FONT-WEIGHT: normal; COLOR: rgb(179,27,27)'>12
U.S. Code § 1701j–3 - Preemption of due-on-sale prohibitions</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></H1></DIV>
<P class=MsoNormal><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(d)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'> <B>Exemption
of specified transfers or dispositions</B></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>With
respect to a real property loan secured by a lien on residential real
property containing less than five dwelling units, including a lien on the
stock allocated to a dwelling unit in a cooperative housing corporation, or
on a residential manufactured home, a lender may not exercise its option
pursuant to a due-on-sale clause upon—</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_1></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(1)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
the creation of a lien or other encumbrance subordinate to the lender’s
security instrument which does not relate to a transfer of rights of
occupancy in the property;</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_2></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(2)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
the creation of a purchase money security interest for household
appliances;</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_3></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(3)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
a transfer by devise, descent, or operation of law on the death of a joint
tenant or tenant by the entirety;</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_4></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(4)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
the granting of a leasehold interest of three years or less not containing
an option to purchase;</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_5></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(5)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
a transfer to a relative resulting from the death of a borrower;</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_6></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(6)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
a transfer where the spouse or children of the borrower become an owner of
the property;</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_7></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(7)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
a transfer resulting from a decree of a dissolution of marriage, legal
separation agreement, or from an incidental property settlement agreement,
by which the spouse of the borrower becomes an owner of the
property;</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_8></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(8)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
a transfer into an inter vivos trust in which the borrower is and remains a
beneficiary and which does not relate to a transfer of rights of occupancy
in the property; or</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><A
name=14d910cdbf19fab4_d_9></A><B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>(9)</SPAN></B><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>
any other transfer or disposition described in regulations prescribed by the
Federal Home Loan Bank Board.</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P></DIV>
<DIV>
<P class=MsoNormal style="LINE-HEIGHT: 15.75pt"><SPAN
style='FONT-SIZE: 10.5pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: rgb(51,51,51)'>Under
6 if the spouse takes by inheritance the spouse can continue paying on the
note. There is a question in your scenario whether the couple own the home
as joint with right of survivorship but if the spouse were to die then the
transfer of the remaining spouse could continue to pay on the note.
</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P></DIV></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<DIV>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>On Sun,
May 24, 2015 at 10:12 AM, Sharon Rutberg <<A
href="mailto:email@sharonrutberglaw.com"
target=_blank>email@sharonrutberglaw.com</A>>
wrote:<U></U><U></U></SPAN></P>
<DIV>
<DIV>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>Hello,
Listmates –<U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>Anybody
out there this holiday weekend? <U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>Married
couple owns a home as “husband and wife” on the deed, but mortgage is in
wife’s name alone (she had the better credit). They want to know
whether, if she dies, he can “just keep making payments” on the existing
mortgage. That sounds doubtful to me, and I’d like to understand what will
happen. If she dies, will notice have to go to the mortgage company as her
creditor? Will the husband (as PR) have to pay off the mortgage using estate
funds, or could he refinance it in his own name? <U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>Thanks
very much for your thoughts, and happy holiday. <U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'>Best,<U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'>Sharon<U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Sharon
C. Rutberg</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Attorney
at Law</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>1718
NW 56<SUP>th</SUP> Street, Suite 304</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Seattle,
WA 98107</SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Website:
<A href="http://www.sharonrutberglaw.com"
target=_blank>www.sharonrutberglaw.com</A> </SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'><A
href="tel:206-409-2604" target=_blank
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style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'><A
href="mailto:email@sharonrutberglaw.com"
target=_blank>email@sharonrutberglaw.com</A></SPAN><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'><U></U><U></U></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"; COLOR: black'>Washington
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<P class=MsoNormal style="BACKGROUND: white"><SPAN
style='FONT-SIZE: 9pt; FONT-FAMILY: "Verdana","sans-serif"'>IRS Circular 230
Disclaimer: To ensure compliance with requirements imposed by the IRS, we
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<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>--
<U></U><U></U></SPAN></P>
<DIV>
<DIV>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>Mary K.
Henderson<U></U><U></U></SPAN></P>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"'>Henderson Law Office
PLLC<BR>1123 Maple Ave SW, Suite 225<U></U><U></U></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN style='FONT-FAMILY: "Calibri","sans-serif"'>Renton,
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