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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Thanks – I need this information for a pending matter I think – look forward to the read.<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>
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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>Nick Pleasants<br>
<b>Sent:</b> Tuesday, January 3, 2023 2:13 PM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] case law on estate not liable to HEIR's creditors?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">When I researched this last year, I concluded that an heir’s creditors could have an enforceable lien against the probate estate. The creditor was heir’s ex-spouse who was owed child support, and DCS was handling enforcement. DSHS recorded
a lien for DCS. The decedent had real property that was up for sale in the probate. Title company did not consider the lien against heir to attach to decedent’s property, so we could have sold it without telling DSHS/DCS. However, DCS had a theory that title
in decedent’s real estate immediately vested to the heirs at death, so DCS considered its lien validly attached to decedent’s real property.<o:p></o:p></p>
<p class="MsoNormal">Your facts may differ if the heir’s creditor has not already reduced it to judgment, which could then be recorded as a lien. But my impression is that if the creditor obtain judgment against an heir, and then records that judgment in the
county where the decedent has real estate, then it could be considered a lien against the decedent’s real estate based on the instantaneous vesting in
<a href="https://app.leg.wa.gov/rcw/default.aspx?cite=11.04.250">RCW 11.04.250</a>.<o:p></o:p></p>
<p class="MsoNormal">I agree with Eric’s point that the estate would at most be a garnishee at the time of distribution. That seems to be the right way to analyze it.<o:p></o:p></p>
<p class="MsoNormal">Best, <o:p></o:p></p>
<p class="MsoNormal">Nick<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">Nicholas Pleasants | Shareholder
<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><span style="color:#70AD47"><img border="0" width="223" height="95" style="width:2.3263in;height:.993in" id="Picture_x0020_1" src="cid:image001.jpg@01D91F7F.FA0D3EE0" alt="OseranHahnAttyatLaw 8"></span><span style="color:#70AD47"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#70AD47"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:#1F497D">CONFIDENTIALITY NOTE: This e-mail message contains information belonging to the law firm of Oseran Hahn, P.S., which may be privileged,
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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>Eric Nelsen<br>
<b>Sent:</b> Tuesday, January 3, 2023 1:43 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] case law on estate not liable to HEIR's creditors?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks Phil!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I haven’t had much response and there really doesn’t appear to be much case law on point. With a “hail Mary” search in WA case law with the words “heir” “creditor” and “estate” in proximity, the only case that even came close to being useful
was <u>Archer Blower & Pipe Co. v. Archer</u>, 33 Wn.2d 317, 319, 205 P.2d 595 (1949),
<u>citing</u> <u>Island Pond Natl. Bank v. Chase</u>, 101 Vt. 60, 141 A. 474, 59 A.L.R. 766 (1928). In
<u>Archer</u>, the creditor was a true creditor of the decedent, not an heir. But when their claim was rejected they tried to garnish the Estate instead of filing a proper suit. For authority they tried to cite case law regarding an
<i>heir’s</i> creditor garnishing the estate of the decedent. Reading the Vermont case mentioned was at least a little helpful on general principles of when and how an estate might be responsible for paying an heir’s debt.<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal">For what it’s worth, here’s what I am using in my briefing:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt">By naming the Estate as defendant, Plaintiff is effectively suing the Estate for a debt not owed by the Decedent. In litigation, the PR of the estate of a decedent merely substitutes for the deceased person.
If litigation is pending at the time of death, the PR may be substituted for the deceased party.
<u>See</u> RCW 4.20.050; RCW 11.40.110; CR 25(a); <u>Petrarca v. Halligan</u>, 83 Wn.2d 773, 522 P.2d 827 (1974). If the person to be sued is already deceased, a creditor claim is filed, and if rejected, the plaintiff creditor then sues, naming the Estate as
defendant in place of the deceased. <u>See</u> RCW 11.40.010; RCW 11.40.100(1). Such litigation is governed by the same rules as would have applied to the living person.
<u>See, e.g.</u>, <u>Schluneger v. Seattle-First Natl. Bank</u>, 48 Wn.2d 188, 190, 292 P.2d 203 (1956) (creditor litigation is an ordinary civil action, not part of probate procedure).
</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span lang="EN-CA" style="font-size:12.0pt">Further, i</span><span style="font-size:12.0pt">t is axiomatic to probate administration that an heir’s interest is subject to the claims, fees, expenses, and other necessities of probate administration.
Because of this, an heir’s interest in an estate “may be divested by the process of administration.”
<u>Bickford v. Stewart</u>, 55 Wash. 278, 286, 104 P. 263 (1909). Only after an estate is closed can an heir treat inheritance property as their own.
<u>In re Peterson’s Estate</u>, 12 Wn.2d 686, 734, 123 P.2d 733 (1942). Accordingly, even a garnishment against an heir’s interest in an estate is ineffective until a final decree of distribution has been entered and the heir’s distributive interest is fixed.
<u>Cf</u>. <u>Archer Blower & Pipe Co. v. Archer</u>, 33 Wn.2d 317, 319, 205 P.2d 595 (1949),
<u>citing</u> <u>Island Pond Natl. Bank v. Chase</u>, 101 Vt. 60, 141 A. 474, 59 A.L.R. 766 (1928) (dicta). While the action here is not a garnishment, the principle is clear that Plaintiff may not attack the debtor heir’s inheritance interest by suing the
Estate directly. It also should be clear as a practical matter that a judgment against the Estate cannot be proper relief for Plaintiff, because if the judgment amount exceeded the debtor heir’s actual inheritance, the Decedent’s other heirs would end up liable
for the remainder of the debt. No law or equitable principle supports such a result.</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<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">eric@sayrelawoffices.com</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"><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>Philip N. Jones<br>
<b>Sent:</b> Tuesday, January 3, 2023 10:52 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] case law on estate not liable to HEIR's creditors?<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">I don’t have a Washington answer, but I do have an Oregon answer that might lead you to a Washington answer. Here is a paragraph I wrote for an Oregon CLE program:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="Style14ptFirstline05" style="text-indent:0in">A personal representative does not have a duty to creditors of a beneficiary, because the definition of interested persons under ORS 111.005(19) does not include creditors of a beneficiary, and ORS 114.395
provides that a personal representative has duties to interested persons, but does not state that the personal representative has duties to persons outside of that definition. Thus it appears that a personal representative should neither aid a creditor seeking
to collect from a beneficiary, nor aid a beneficiary in concealing assets. However, if a creditor garnishes the distributive share of a beneficiary, then the creditor becomes a distributee/beneficiary, and the personal representative then has duties to that
creditor as a distributee/beneficiary.<o:p></o:p></p>
<p class="Style14ptFirstline05" style="text-indent:0in">Phil Jones<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Philip N. Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Duffy Kekel LLP<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">900 S.W. Fifth Ave. Suite 2500<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Portland, OR 97204<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><a href="mailto:pjones@duffykekel.com">pjones@duffykekel.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-1371 – office<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-3574 - fax<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></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>Eric Nelsen<br>
<b>Sent:</b> Tuesday, January 3, 2023 9:43 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> [WSBAPT] case law on estate not liable to HEIR's creditors?<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Happy New Year everyone! I have been circling the drain on research that I am pretty sure is out there—a case that makes clear that an estate is not liable in any way to an heir’s creditors. Can anybody help me with a cite?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks,<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">eric@sayrelawoffices.com</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>
<p class="MsoNormal"><o:p> </o:p></p>
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