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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt'>I agree and I think the rev agent is pressing because he/she is really limited to levy on the beneficiary’s interest. They are treated as judgment creditors for seizure matters except in a few instances. Whatever you distribute to the bene either satisfies the lien or only partially satisfies and DOR can keep its lien on the beneficiary’s interest if it feels you are not doing a bona fide 3<sup>rd</sup> party sale so that it gets bona fide 1/2 (or whatever) value of the property net of costs of sale and other allowable payments. But the remedy of the state is to only allow keep the lien in place as only partially satisfied.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt'>From:</span></b><span style='font-size:11.0pt'> wsbapt-bounces@lists.wsbarppt.com <b>On Behalf Of </b>Eric Nelsen<br><b>Sent:</b> Monday, March 16, 2020 9:54 AM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] DOR Tax Warrants on Beneficiary of Estate with Real Estate Assets Only<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt'>That doesn't sound right. Unless DOR has an actual argument that it somehow has a direct interest in the real estate—meaning, it actually owns a title interest, not just having a lien for monetary reimbursement—I don't see how DOR can require transfer of a specific asset.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>There is also a difference between DOR having a lien on the <i>real property</i>, versus DOR having a lien on A's <i>interest in the Estate</i>. A's interest in the Estate is inchoate, is subject to the Estate's need to pay creditors and administrative expenses, and does not involve a right to receive any specific asset. So even if DOR has a lien against A's interest in the Estate, that would not give it authority to tell the PR what to do with the real property, or in what form to distribute A's interest.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Maybe DOR wants to argue that the heirs inherited the real property automatically under <a href="https://app.leg.wa.gov/RCW/default.aspx?cite=11.04.250">RCW 11.04.250</a>, and so it has a lien directly on the real property. But even that wouldn't work for them, because that statute specifically says that an heir's right to real property is subordinate to the rights of "the personal representative when appointed, and persons lawfully claiming under such personal representative."<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>I would want to see the specific statutory authority that DOR is relying on to assert a right to receive real property in satisfaction of its lien.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt'>Sincerely,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Eric<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Eric C. Nelsen<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Sayre Law Offices, PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>1417 31st Ave South<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Seattle WA 98144-3909<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>206-625-0092<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a><o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt'>From:</span></b><span style='font-size:11.0pt'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>> <b>On Behalf Of </b>Natalie Kuehler<br><b>Sent:</b> Sunday, March 15, 2020 3:15 PM<br><b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a><br><b>Subject:</b> [WSBAPT] DOR Tax Warrants on Beneficiary of Estate with Real Estate Assets Only<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt'>Hello all,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>I have an estate with substantial real estate holdings but nothing else in the way of assets. There are two residual estate beneficiaries, A and B. A has outstanding tax warrants that are a little less than the value of A’s interest in the residual estate. DOR has filed a notice of tax lien on A’s interest in the estate assets. DOR is now telling me that the personal representative has to distribute real estate valued in the amount of DOR’s tax warrants directly to DOR. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Has anybody else ever dealt with this? I can’t quite believe that the PR actually needs to distribute real estate to DOR. It would make much more sense to either (i) require the PR to sell A’s share of the real estate and satisfy B’s tax warrants (and DOR’s tax lien on the estate assets) from that real estate sale before distributing the remaining property or sales proceeds to A; or (ii) require the PR to distribute the real estate to A subject to a lien by DOR.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>A is apparently trying to negotiate a settlement with DOR; we have no idea whether that will be successful however. A is also not interested in disclaiming at this point.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Any advice would be greatly appreciated!<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Many thanks,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Natalie<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Chaparral Pro";color:black'><img border=0 width=663 height=176 style='width:6.9083in;height:1.8333in' id="Picture_x0020_1" src="cid:image001.png@01D5FB84.CA5D3AA0" alt="signature_1525356859"><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>