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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Marilyn,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">I think those items listed would definitely constitute costs of administration. RCW 11.48.050 states in part that the PR “shall be allowed all necessary expenses in the care,
management, and settlement of the estate.” This is regardless of whether the debts and liabilities end up exceeding the assets. In addition, your client can receive a reasonable fee for his services as PR, so the time he put into getting the property ready
for sale etc etc. can be considered administration expenses (as well as any attorney fees per RCW 11.48.210).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">RCW 11.76.110 sets forth the priority of creditor rights. Costs of administration take priority over debts given preference by law; state taxes or debts.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">I have been in a similar situation with DSHS. When I laid out the law and proved the inability of the estate to pay any debts after costs of administration, they backed off.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Good luck,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Randy<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Marilyn J Kliman Law<br>
<b>Sent:</b> Thursday, March 9, 2017 10:33 AM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] what qualifies as a cost of administration?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Folks –<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Out-of-state sole surviving heir, son of decedent & appointed PR, had to come here to clean up hoarder mom’s house to make it saleable. He spent substantial time away from work and bookoo bucks
for cleaning, hauling, etc,, in addition to the cost of airfare. Normally, of course, it wouldn’t matter how costs were categorized as it would eventually all come out of the same pot for a sole heir.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">However, DSHS has a substantial lien on the house – the only asset – likely exceeding the value of the property. They have agreed to accept a reduced percentage but, depending on what the house
sells for, the DSHS recovery may eat up what’s left when it’s their turn, a la RCW 11.76.110, leaving nothing for the son. Seems only reasonable that, at very least, son should not end up in the negative for out-of-pocket costs. (We did negotiate the reduced
lien with DSHS before advising son to even open probate vs. walking away, but son has since discovered greater debt than anticipated.) <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">So … I have not found any definitive law or rule as to what constitutes “costs of administration.” Technically, is maximizing the estate value by coming here and cleaning up the house an administrative
expense? My thought at this point is to submit all out-of-pocket costs as expenses and let DSHS object if they care to.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Thoughts and wisdom?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white">Marilyn J. Kliman, Attorney at Law</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white">Marilyn J. Kliman Law, PLLC</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white">510 Bell Street</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white">Edmonds, WA 98020</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white"><a href="tel:206.499.0993" target="_blank">206.499.0993</a></span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white"><a href="mailto:Marilyn@MarilynJKlimanLaw.com" target="_blank">Marilyn@MarilynJKlimanLaw.com</a></span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;background:white"><a href="http://www.marilynjklimanlaw.com/" target="_blank">www.MarilynJKlimanLaw.com</a></span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
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