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<p class="MsoNormal">I agree with Marvin that if possible, it’s good to have a few thousand dollars to do some minor repairs, touch-up paint, cleaning, staging, etc., to get property for sale. But in general I advise my clients strongly against doing anything
to “improve” the property in an effort to get a better price, for several reasons.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">First, the PR’s duty is to settle the estate as quickly as possible and sell as-is “without sacrifice” per RCW 11.48.010; clearly the “without sacrifice” standard means only to get it sold for its as-is value, and there is no duty to make
investment or speculative efforts to <i>increase</i> the value of the estate. So, it’s arguably a breach of fiduciary duty to use estate cash to improve estate real property in hopes that the real property can be sold for a higher price that covers the expenditure
of the cash. If the gamble goes wrong, the liability falls on the PR.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Second, Murphy’s law makes it a bad idea. My rule of thumb with contractors is to take their estimate of time and cost and double them both. A 3-week kitchen remodel for $30,000 will take 6 weeks and cost $60,000. It’s not a matter of dishonesty
so much as optimism and salesmanship by the contractor, combined with the unknown issues that arise midstream and complicate almost any remodel.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">On a couple occasions, I have reluctantly agreed to have the PR conduct improvements on real estate, after all the heirs gave the estate written agreements stating that they understood it was a speculative effort that they were all agreeing
on, there was no guarantee the price would increase, etc., etc. In both instances, the project took at least twice as long and took at least twice as much as the contractor estimated, and the only thing that bailed out the estates was the insanely inflated
real estate market in Seattle. Effectively, the project took so long that the general real estate market rose enough to squeak out something better than break-even. My plan going forward if I encounter this again, is to tell the PR not to do it, and if the
heirs are insistent, to distribute the real estate in kind to the heirs and let them take on the job.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sincerely,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric C. Nelsen<o:p></o:p></p>
<p class="MsoNormal">Sayre Law Offices, PLLC<o:p></o:p></p>
<p class="MsoNormal">1417 31st Ave South<o:p></o:p></p>
<p class="MsoNormal">Seattle WA 98144-3909<o:p></o:p></p>
<p class="MsoNormal">206-625-0092<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:eric@sayrelawoffices.com"><span style="color:#0563C1">eric@sayrelawoffices.com</span></a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="background:aqua;mso-highlight:aqua">Covid-19 Update -
</span></b>All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please
direct mail and deliveries to the Seattle office.<o:p></o:p></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>Brent Williams-Ruth<br>
<b>Sent:</b> Tuesday, March 9, 2021 4:26 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <WSBAPT@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Estate Funds to "Improve" Real Property<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Greetings List - <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">I was approached today by a company that would like me to keep them in mind for when I have Estates with real property that could benefit from spending estate funds to improve the real property
so that it will be able to fetch more on the open market. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">I have not yet had this issue cross my desk. Fortunately, each piece of real property that I have had has either gone to a surviving spouse or needed something simple like - cut back the hedges
and shrubs that have been ignored for the past five years. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">I am intrigued, but I also have reservations and am curious as to what collectives thoughts on that. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Thank you!<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">Brent<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<p><b><span style="font-family:"Times New Roman",serif">Brent Williams-Ruth</span></b><span style="font-family:"Times New Roman",serif"> (preferred pronoun: he/him)<br>
<i>Attorney-At-Law</i></span><o:p></o:p></p>
<p><b><span style="font-family:"Times New Roman",serif">Law Offices of Brent Williams-Ruth, </span></b><b><span style="font-size:7.5pt;font-family:"Times New Roman",serif">a division of BWR Consulting, PLLC</span></b><o:p></o:p></p>
<p><b><u><span style="font-family:"Times New Roman",serif;color:red">New Address & Phones Effective December 1, 2020:</span></u></b><b><span style="font-family:"Times New Roman",serif"> 500 S 336th Street, Suite 214; Federal Way, WA 98003</span></b><o:p></o:p></p>
<p><span style="font-family:"Times New Roman",serif">Office/Scheduling Phone:<span style="color:#004080"> </span><span style="color:red">(253) 285-7751</span></span><o:p></o:p></p>
<p><span style="font-family:"Times New Roman",serif">Direct:<span style="color:red"> (253) 285-7453</span></span><o:p></o:p></p>
<p><span style="font-family:"Times New Roman",serif"><a href="mailto:Brent@Williams-RuthLaw.com" target="_blank">e-mail</a> / <a href="http://www.williams-ruthlaw.com/" target="_blank">website</a> /</span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> </span><span style="font-family:"Times New Roman",serif"><a href="http://www.facebook.com/bwrlaw" target="_blank"><span style="font-size:9.5pt">facebook</span></a></span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> / </span><o:p></o:p></p>
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