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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Thanks Paul--I think I haven't phrased my question #2 very well.<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">RCW 11.54.080 appears to address only "exempt property" that is "held" by a claimant. What does that mean? Are we talking about decedent's property that is
in a claimant's possession? Or maybe, if the decedent's estate totals less than $125,000, the claimant can include some of
<u>their own</u> property as exempt? (But that makes no sense because an heir's property isn't subject to decedent's debts anyway.) But if it only applies to decedent's property, why the clause limiting application of the statute to a claimant who "holds exempt
property"?<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">And why is it "exempt" property? The statute simultaneously appears to be the
<u>procedure</u> for making additional property exempt, but also implies that the procedure can only apply to property is already exempt in some other way?<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">Is it intended to allow claimants to apply more than once, to make more of decedent's property exempt, if the first order didn't exempt a full $125,000 in value?
But when would that ever happen--why wouldn't someone take care of it on the first petition? And even if that is the purpose of .080, why on earth is the procedure so elaborate? I would think that issue could be addressed by a single line, allowing multiple
petitions by multiple claimants so long as the total of all exempted property does not exceed $125,000.<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">Can you tell I am deeply confused by this statute...<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>
<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"><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>Paul Grant<br>
<b>Sent:</b> Tuesday, September 15, 2015 4:10 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> Re: [WSBAPT] Family Support versus additional exempt assets; counting of community property?<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">Eric,<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">My reading of the statute for the issues you presented: #1 - I agree with your interpretation that the $125 is only talking about a decedent's portion of c/p or separate property. If the surviving spouse has
$500k in separate property it is not the decedent's, so the exemption applies to only the decedent's estate, and for that matter, only the probateable estate. Also, half of the c/p is considered the surviving spouse's and should not be reflected in the $125
calculation; I have calculated the entire c/p value then halved the amount and have been successful in courts accepting this interpretation in awarding the exemption. A consideration under 11.54.050 is for a creditor to claim that there are nonprobate assets
sufficient to the survivor and therefore a reduction should be applied to the presumption.<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">Question #2 in my opinion is simply telling us what the exemption amount is... no where in 11.54 is the ceiling exemption expressed. It is a horrible reference but 6.13.030 is only pulling the exemption amount
to the homestead statute. It is an aggregate amount so the combination of real, personal, investment, etc is all combined to reflect the exempt amount (I find Mike accurately states whether it is c/p or separate prop). However, there is an opportunity to
seek an increased award, so just like a creditor can seek for a reduction so the petition can seek for an increase.<o:p></o:p></p>
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<p class="MsoNormal">That is my humble interpretation - hope my rambling assists<o:p></o:p></p>
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<o:p></o:p></p>
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<p class="MsoNormal"><br>
Paul H. Grant - JD, LL.M<br>
<br>
Planning with Purpose, Inc<br>
Lynnwood, WA 98036<br>
425-939-9948<br>
<a href="http://www.planningwithpurposeinc.com" target="_blank">www.planningwithpurposeinc.com</a><br>
<br>
Estate Planning. Business Planning. Wealth Succession.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">On Tue, Sep 15, 2015 at 2:21 PM, Eric Nelsen <<a href="mailto:Eric@sayrelawoffices.com" target="_blank">Eric@sayrelawoffices.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">I'm having trouble figuring out exactly what assets count toward the family support award, and also what the heck is covered by
<a href="http://app.leg.wa.gov/rcw/default.aspx?cite=11.54&full=true#11.54.080" target="_blank">
RCW 11.54.080</a> re "additional exempt assets."<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">I get that the basic family support award is $125,000, and the assets awarded are exempt from all other claims against the estate (except secured creditors).<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">First question: The award also protects the survivor's half of community property, not just the half owned by the decedent.
<a href="http://app.leg.wa.gov/rcw/default.aspx?cite=11.54&full=true#11.54.070" target="_blank">
RCW 11.54.070(2)</a>. Does the survivor's half interest count toward the $125,000, or is the survivor's half
<u>in addition to</u> $125,000 inherited from the deceased spouse's estate? <a href="http://app.leg.wa.gov/rcw/default.aspx?cite=11.54&full=true#11.54.010" target="_blank">
RCW 11.54.010(1)</a> says the award is from the "property of the decedent." To me, that means $125,000 from the decedent's half of community property, and then the survivor's half is also protected even though that means more than $125,000 is ultimately protected.
Am I being piggy?<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Second question: What the heck kind of assets can be protected as "additional exempt assets" under
<a href="http://app.leg.wa.gov/rcw/default.aspx?cite=11.54&full=true#11.54.080" target="_blank">
RCW 11.54.080</a>? Subsec (1) says "This section applies if the party entitled to petition for an award holds exempt property that is in an aggregate amount less than [$125,000]." What does "exempt property" even mean in this statute? It's undefined in RCW
11.54 and trying to import the meaning of "exempt" from RCW 6.13 or RCW 6.15 doesn't seem to make sense. I don't think it means the survivor's half of community property, because that appears to already be protected under the general award. Section .080 also
suggests that a child of decedent could be holding "exempt property"--but what could a decedent's child be holding that the parent's creditors could possibly affect, unless it's already an asset of the estate?<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">I have a suspicion I'm making this too complicated, but can't seem to find my way out. Any sage advice out there?<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Sincerely,<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Eric<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Eric C. Nelsen<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">SAYRE LAW OFFICES, PLLC<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">1320 University St<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Seattle WA 98101-2837<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">phone
<a href="tel:206-625-0092" target="_blank">206-625-0092</a><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">fax
<a href="tel:206-625-9040" target="_blank">206-625-9040</a><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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