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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">I understand a trustee/PR owing fiduciary duty to beneficiaries/heirs/devisees, which suggests a duty to deal fairly, openly, and wisely with creditors to minimize risk and cost to the trust/estate
and its beneficiaries. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">E.g., I push clients to give actual notice to known and ascertainable generously to cut off claims promptly – after promptly paying in full all valid claims. This is proper and is loyal
to the beneficiaries (because it keeps them from trouble). But then I do <u>not</u> give creditors more information than the notice requires if they call asking questions. I would at most maybe send an inquiring creditor a copy of my long-ago-filed affidavit
to the court listing all the known and ascertainable creditors we sent notice to, which has a copy of that notice as exhibit A. Let them figure it out from there. (I would be more willing to send that if their name/address appeared on it.)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">I could perhaps imagine a fiduciary duty to creditors arising in an
<u>insolvent</u> estate. I would borrow this from (Delaware but maybe now more) corporate law, which I believe recognizes duties owed to shareholders – and only any level of duty to creditors as the corporation
<u>passes</u> (not even as it approaches) the “zone of insolvency” – i.e., only once the entity firmly is insolvent. (I had to dissect the seminal Delaware case
<i>North American Catholic Educational Programming v. Gheewalla</i> (Del. Supr. 2007) for a partner back in the day. I gather it’s still good law (</span><a href="https://corpgov.law.harvard.edu/2020/04/15/director-fiduciary-duty-in-insolvency/">https://corpgov.law.harvard.edu/2020/04/15/director-fiduciary-duty-in-insolvency/</a><span style="font-family:"Times New Roman",serif">).)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">I just don’t presently see how a trustee/PR owes a
<u>fiduciary</u> duty to creditors of a solvent estate, but I respect that there are surely arguments I haven’t considered.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Best regards, Josh
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Joshua D. McKarcher<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">McKarcher Law PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">537 6th Street<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Clarkston, WA 99403<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">(509) 758-3345<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">(509) 758-3314 (fax)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><a href="mailto:josh@mckarcherlaw.com">josh@mckarcherlaw.com</a><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt">From:</span></b><span style="font-size:11.0pt"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Philip N. Jones<br>
<b>Sent:</b> Wednesday, July 15, 2020 4:45 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] PR Duty to Respond to Potential Creditors?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">First, I apologize because I have not followed this entire thread. Perhaps my question has already been answered: Way down here in Oregon, there is very little authority on the issue of whether
a PR has a fiduciary duty to creditors. I think there is such a duty. But little authority exists. Some practitioners think there is no duty. Perhaps the answer is a compromise: To protect the PR against potential liability to an overlooked creditor,
the PR should be careful to treat the creditors properly.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Any authority in Washington?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Thanks,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Phil Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Portland, OR<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<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>Xan Gerson<br>
<b>Sent:</b> Wednesday, July 15, 2020 10:12 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBAPT] PR Duty to Respond to Potential Creditors?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">For what it’s worth, in a guest lecture to the estate planning class I was teaching, Comm. Velategui said that you are required to send notice of probate to CIR partners.
</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"Minion Pro";font-variant:small-caps;color:#5B2F7A;letter-spacing:1.0pt">Alexandra (Xan) Gerson</span><b><span style="font-size:11.0pt;font-family:"Minion Pro";color:gray"><br>
</span></b><i><span style="font-size:7.5pt;font-family:"Minion Pro";color:gray">Attorney</span></i><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:7.5pt;font-family:"Minion Pro";color:gray">206.408.8163<br>
<a href="mailto:xan@metisestateplanning.com">xan@metisestateplanning.com</a> </span>
<o:p></o:p></p>
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<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>Nicholas Pleasants<br>
<b>Sent:</b> Tuesday, July 14, 2020 6:43 PM<br>
<b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBAPT] PR Duty to Respond to Potential Creditors?</span><o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Hello fellow probate practitioners,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">I have a couple probate hypotheticals for consideration.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">First situation: Let’s say a creditor was provided Notice to Creditors, the 4-months since publication has passed and the 30-days from delivery to creditor has passed. Now creditor sends a letter asking for
a copy of the Notice to Creditors. I don’t want to restart the RCW 11.40.030 clock, giving them another month to respond. Does PR have a duty to respond to this potential creditor at all?</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Second situation: Let’s say decedent may have been in a meretricious relationship. Is the non-spouse partner entitled to any notice of the probate? Let’s say non-spouse is not mentioned in the Will at all,
not a co-owner of decedent’s real property, but possibly there is some tangible personal property owned together. How about notice to creditors as a potential claimant? Obviously PR does not want to encourage potential claimant, and only wants to provide notice
as strictly required by statute. Also wondering whether non-spouse partner has any right to request special notice?</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">I realize that second situation is a bit trickier, as the interplay between Committed Intimate Relationship doctrine and Probate is interesting. I am curious from a notice standpoint what responses you might
advise PR to give in these situations. Thanks in advance for any experience you can share.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Best,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Nick</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;color:#2B6AA4">Nicholas Pleasants</span></b><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Pleasants Law Firm, P.S.<br>
2300 130th Ave NE, Suite A-101<br>
Bellevue, WA 98005-1755<br>
(425) 615-7070 tel/fax<br>
<a href="mailto:nick@pleasantslaw.com"><span style="color:#00006A">nick@pleasantslaw.com</span></a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:8.0pt;color:black">The information contained in this e-mail message may be privileged and is confidential information intended only for the use of the recipient, or any employee or agent responsible to deliver it
to the intended recipient. Any unauthorized use, distribution or copying of this information is strictly prohibited and may be unlawful.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:8.0pt;color:black">If you have received this communication in error, please notify the sender immediately and destroy the original message and all attachments from your electronic files.</span><o:p></o:p></p>
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