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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>This brings up a related question I have. Regarding an increase in the award, my reading of RCW 11.54.040(1) is that an increase is only warranted if an increase is necessary to provide for the surviving spouse’s basic maintenance and support <b>during the pendency of the probate</b> and that the anticipated future needs of the surviving spouse after the probate is closed are not to be considered. Therefore, a creditor affected by the requested increase in the award could object to the increase to the extent it was based on the anticipated future needs of the surviving spouse beyond the estimated date when the probate will be closed. Am I reading that correctly? <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><span style='font-size:13.0pt;font-family:CIDFont+F1'>Increase in amount of award—Factors for consideration.<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-family:CIDFont+F2'>(1) If it is demonstrated to the satisfaction of the court with clear, cogent, and convincing evidence<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-family:CIDFont+F2'>that a claimant's present and reasonably anticipated future needs during the pendency of any probate<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-family:CIDFont+F2'>proceedings in the state of Washington with respect to basic maintenance and support will not<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-family:CIDFont+F2'>otherwise be provided for from other resources, and that the award would not be inconsistent with the<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-family:CIDFont+F2'>decedent's intentions, the amount of the award may be increased in an amount the court determines<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:CIDFont+F2'>to be appropriate.</span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Sincerely,<o:p></o:p></p><p class=MsoNormal>Jon M. Fritzler<o:p></o:p></p><p class=MsoNormal>Attorney at Law<o:p></o:p></p><p class=MsoNormal>PO Box 61451<o:p></o:p></p><p class=MsoNormal>Vancouver, WA 98666<o:p></o:p></p><p class=MsoNormal>Tel. 360.818.4431<o:p></o:p></p><p class=MsoNormal>Eml <a href="mailto:fritzlerlaw@outlook.com">fritzlerlaw@outlook.com</a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>CONFIDENTIALITY<o:p></o:p></p><p class=MsoNormal>The information contained in this email is intended only for the use of the person or entity to whom it is addressed. This email may contain confidential or privileged information. If you are not the person whose name appears above, or the person responsible for delivering the email to the addressee, you are hereby notified that reading, using, copying, distributing or disseminating this communication is strictly prohibited. If you think that you have received this email message in error, please email the sender at <a href="mailto:fritzlerlaw@outlook.com">fritzlerlaw@outlook.com</a>. Thank you.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Jane Bitz<br><b>Sent:</b> Friday, April 22, 2016 7:19 AM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] Family Support Award of house with negative equity<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Eric: <span style='font-size:12.0pt'><o:p></o:p></span></p></div><div id=AppleMailSignature><p class=MsoNormal>I think your analysis of this situation is correct. I haven't zeroed out a home value in the past but I have used home loan debt to reduce the value so that cash can be included in the award. <o:p></o:p></p></div><div id=AppleMailSignature><p class=MsoNormal><o:p> </o:p></p></div><div id=AppleMailSignature><p class=MsoNormal>Remember that the court can increase the award to the surviving spouse based on the statutory factors. I always try to argue an increase because the basic award alone would have lots of people forced out of their homes or keeping their homes with no cash at all. <o:p></o:p></p></div><div id=AppleMailSignature><p class=MsoNormal>Jane Bitz<br><br>Sent from my iPhone<o:p></o:p></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'><br>On Apr 21, 2016, at 4:33 PM, Eric Nelsen <<a href="mailto:Eric@sayrelawoffices.com">Eric@sayrelawoffices.com</a>> wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal>Married couple with a house with slight negative equity due to multiple mortgages. One dies. There is sufficient cash in the estate to allow a family support award to the surviving spouse in the full amount of $125,000. There are numerous community creditors that would completely exhaust the $125,000, if it is not protected by family support award.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>My thought is to make the family support award of (1) the house, subject to existing encumbrances as required by the statute, meaning that its "value" for purposes of calculating the family support award is zero; and (2) $125,000 in cash.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>To my mind, that would mean that the house is protected from any unsecured creditors, and if it increases in value, any equity that results would remain protected from creditors.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Similarly, there is the possibility that one of the mortgages, a private loan, will become unenforceable in another year or so due to statute of limitations, at which point the mortgage can be stripped via quiet title. That results in even more equity – again, protected from creditors.<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Is this kosher? Since the award is limited to $125,000 in value, can you effectively load the family support with "zero value" assets that might later appreciate?<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Sincerely,</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Eric</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Eric C. Nelsen</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>SAYRE LAW OFFICES, PLLC</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>1320 University St</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Seattle WA 98101-2837</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>phone 206-625-0092</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>fax 206-625-9040</span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p></div></blockquote><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>_______________________________________________<br>WSBAPT mailing list<br><a href="mailto:WSBAPT@lists.wsbarppt.com">WSBAPT@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbapt">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><o:p></o:p></span></p></div></blockquote></div></body></html>