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<p class="MsoNormal"><span style="font-size:16.0pt">Dalynne,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">I think the motion is proper. To assume one who has assets available the moment before death for existing claims can avoid them by funding a trust would have all of us planning significantly different – this
is also why the non probate abatement statute exists. We can’t surpass creditors with just a bunch of JWROS, POD, TOD accounts – the same is true of a revocable trust that becomes irrevocable because of death.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">I’d be interested to hear of your outcome – keep me on that radar if you think about it and I do hope all is well in Snohomish.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><i><span style="font-family:"Script MT Bold"">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold""><o:p> </o:p></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<o:p></o:p></p>
<p class="MsoNormal">Douglas Eden<o:p></o:p></p>
<p class="MsoNormal">717 W. Sprague Ave.<o:p></o:p></p>
<p class="MsoNormal">Suite 1500<o:p></o:p></p>
<p class="MsoNormal">Spokane, WA 99201<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com"><span style="color:#0563C1">djkiepe@depdslaw.com</span></a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Dalynne Singleton<br>
<b>Sent:</b> Tuesday, July 21, 2020 7:41 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Can Creditors Access Assets Placed into a Revocable Living Trust after the settlor's Death<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt">This is interesting. I have a similar issues. A creditor’s claim filed timely in a probate. All assets were placed into a non-revocable testamentary trust upon the death of the decedent.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">So, the estate really has no assets but the trust document clearly provides that creditors are to be paid upon death. The creditor’s claim was rejected and there is tort litigation pending with possible
insurance to pay the claims.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">BUT, the issues will be (1) if there is not enough insurance to cover the claims, then will the estate be able to take back some of the trust assets to pay the claim; and (2) protecting the trust assets from
being distributed before the creditor claims is resolved and paid, or not. Trustee is selling assets and home for the trust.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Time for a motion in probate court to protect the trust assets up to the value of the creditor’s claim.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><b><i><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:#1F497D">Dalynne Singleton<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:#1F497D">Gourley Law Group<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:#1F497D">Snohomish Escrow<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:#1F497D">The Exchange Connection<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#1F497D">1002 10<sup>th</sup> Street / PO Box 1091<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#1F497D">Snohomish, WA 98291<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#1F497D">360.568.5065<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#1F497D">360.568.8092 fax<o:p></o:p></span></p>
<p class="MsoNormal"><a href="mailto:dalynne@glgmail.com"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">dalynne@glgmail.com</span></a><u><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#0563C1"><o:p></o:p></span></u></p>
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<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
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<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> <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>Diane J. Kiepe<br>
<b>Sent:</b> Monday, July 20, 2020 4:19 PM<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] Can Creditors Access Assets Placed into a Revocable Living Trust after the settlor's Death<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:16.0pt">Hello Michael,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">Your client is right to be concerned and this issue can become problematic. First of all, if it is placed in the trust after death by say beneficiary designation, certain creditor protection is, in fact
loss. I see this issue is particularly worthy of review with life insurance proceeds and qualified plans. I always advise that the general master trust should not be named for these assets.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">Remember Revocable Living trust are simply probate avoidance devices and the general rule of thumb is, if an asset were subject to the decedent’s claims at the moment before death, death does not change that,
with the exception of very few assets. See RCW 11.18.200€.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">I have taken position that if made payable to a subtrust in a living trust, it is only payable for a decedent’s estate if there are other insufficient trust assets and not otherwise excepted. So, for example,
I have made qualified plans and life insurance payable to a decedent’s by-pass type trust under a living trust.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt">Just my 2 cents.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold"">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold""><o:p> </o:p></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<o:p></o:p></p>
<p class="MsoNormal">Douglas Eden<o:p></o:p></p>
<p class="MsoNormal">717 W. Sprague Ave.<o:p></o:p></p>
<p class="MsoNormal">Suite 1500<o:p></o:p></p>
<p class="MsoNormal">Spokane, WA 99201<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com">djkiepe@depdslaw.com</a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:16.0pt"><o:p> </o:p></span></p>
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<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> <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><a href="mailto:msafren@jennylinglaw.com">msafren@jennylinglaw.com</a><br>
<b>Sent:</b> Monday, July 20, 2020 4:03 PM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] Can Creditors Access Assets Placed into a Revocable Living Trust after the settlor's Death<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hello Learned Listservers,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I had a question for you all regarding creditor’s ability to access assets that were placed into a revocable living trust after the settlor’s death. I’m unclear if the creditor has such an ability and if so the extent of the creditor’s
ability to force the sale of assets transferred into the trust to satisfy the creditor’s claims.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">To be clear, these are not secured creditors, but rather potential unsecured creditors and assume that creditors file their claims timely.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I could find nothing clearly answering this question one way or the other. RCW 19.36.020 states “That all deeds of gift, all conveyances, and all transfers or assignments, verbal or written, of goods, chattels or things in action, made
in trust for the use of the person making the same, shall be void as against the existing or subsequent creditors of such person.” However, once a settlor dies and successor beneficiary and successor trustee appears, I imagine that RCW 19.36.020 would not
longer apply. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I’ve got a client and this question is of great concern to my client. Please let me know your thoughts and the reasons for your opinions.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:black">Warmest regards,<br>
<br>
</span><b><span style="font-size:12.0pt;color:purple">Michael S. Safren, Esq.</span></b>
<b><br>
</b><i>Attorney at Law</i> <br>
<br>
14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168 <br>
11900 NE 1st St., Bldg. G - Ste. 300 | Bellevue, WA 98005 <br>
P: (206) 859-5098 | E: <a href="mailto:msafren@jennylinglaw.com" target="_blank">
<span style="color:blue">msafren@jennylinglaw.com</span></a> <br>
<a href="http://www.jennylinglaw.com" target="_blank"><span style="color:blue">www.jennylinglaw.com</span></a> |
<a href="http://www.facebook.com/jennylinglaw/" target="_blank"><span style="color:blue">facebook.com/jennylinglaw/</span></a>
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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