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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Sara,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">I think the focus here would be if it might be pulled back in by the laws related to Washington Voidable Transfer Laws RCW 19.40.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">I believe the bankruptcy cases would most apply when you are doing your analysis because in essence, I think, if you walk it all the way through you would first assume judgement,
consider how to avoid satisfying judgement (and bankruptcy may play a rule here – my memory is foggy). I had a case with other counsel with me where we were winning the judgement, no doubt and the defendant, for the end, hired a bankruptcy lawyer. We expressed
our concern with this and in the end the judgement for us was found and when it comes time to settle up the estate we get to satisfy the judgement for that person from that person’s share.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><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:12.0pt;font-family:"Times New Roman",serif"><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>Roger Hawkes<br>
<b>Sent:</b> Saturday, November 5, 2022 1:46 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Can a disclaimer shield assets from creditors?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sara: no similar experience here; but my vote would be that the disclaimer does not shield that asset from collection; it won’t hurt however,
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<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>Sara Longley<br>
<b>Sent:</b> Friday, November 4, 2022 4:52 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 a disclaimer shield assets from creditors?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hello listmates,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Here is your Friday afternoon head-scratcher.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Washington’s disclaimer statute, RCW 11.86, allows an estate beneficiary to disclaim any interest and states (11.86.041(1)) that such disclaimed interest shall pass as if the beneficiary had died immediately prior to the date of the transfer
of the interest. In effect, it is as if the beneficiary never had a right to the disclaimed property.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">My question: where an estate beneficiary is a defendant in a personal injury lawsuit at the time Decedent dies, can the beneficiary shield his inheritance from a later-entered judgment in favor of the tort plaintiffs by disclaiming it?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">My hypothetical client is the alternate beneficiary who would inherit the estate property should the primary beneficiary disclaim it. Will this hypothetical client be free of liability to the primary beneficiary’s judgment creditors?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I have reviewed several bankruptcy court cases in which a disclaimer is held to be effective to shelter disclaimed estate assets from bankruptcy creditors where the bankruptcy is filed after the disclaimer. However, they all depend on
the bankruptcy code’s reference to state law, which in turn brings in state-authorized disclaimers. I have also read a Tax Court case which holds that a disclaimer is NOT effective to shield disclaimed assets from a tax lien in existence at the time the disclaimer
is made, which rests its holding on the Internal Revenue Code’s reference to federal, not state, law: because the IRC does not specifically exempt disclaimed property from collection, such property is deemed available to satisfy a tax debt.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">My case is neither bankruptcy nor tax. The events resulting in the ongoing lawsuit occurred prior to the Decedent’s death. Do any of you have experience with a similar matter or know of relevant case law?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Many thanks,<o:p></o:p></p>
<p class="MsoNormal">Sara Longley<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Sara D. Longley<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Senior Attorney<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Ivy Law Group, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">1734 NW Market Street<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Seattle, WA 98107<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Phone: (206) 706-2909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#1F497D"><a href="mailto:sara@ivylawgroup.com">sara@ivylawgroup.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif">Pronouns: she, her, hers<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:1.0pt;font-family:"Arial Narrow",sans-serif;color:#76923C"><img border="0" width="122" height="107" style="width:1.2708in;height:1.1145in" id="Picture_x0020_1" src="cid:image001.jpg@01D8F1F2.C00EE190"></span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">NOTE: Ivy Law Group offices will be closed November 11, 14, and 22-25.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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