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<p>Law Office of<br>
<strong>F.ANDREKITA SILVA</strong><br>
<strong>_______________________________________________________ </strong><br>
<br>
March 30, 2023<br>
<br>
List serve,<br>
<br>
I have a client whose adult son died about 3 months ago. He was divorced and left behind 2 young children. His debt exceeded $40K. <br>
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He had about 2K in a checking account that included his last paycheck, an IRA with about $4k in it (no named beneficiary), and a $15K life insurance policy that also did not name a beneficiary (this Dad really did not planning...)<br>
<br>
I initially thought Grandmother could explain the insolvency to creditors and ask them to voluntarily discharge the debt of deceased son as if a Petition for family support were filed, creditors wouldn’t get anything anyway. However, the grandparents don’t have custody. They really just want to gather the assets and put them into a college fund for the children. <br>
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It also occurred to me that as grandparents, they aren’t successors!!! The statute doesn’t actually authorize them to execute a small estate affidavit. So, this isn’t a means for them to access the funds for the children (at least I assume not?)<br>
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I looked at the statute for Minor Conservatorships. It seems that under that statute, the paternal grandparents could get a Limited Appointment as Minor Conservators for the purpose of securing the funds from the bank, and the IRA and life insurance. I assume that if the grandparents identified the assets they are trying to secure in the Petition for Appointment, this could satisfy creditors that they wouldn’t get their debt paid, and they would voluntarily agree to discharge the debt had by the deceased.<br>
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The children’s mother has not been handling any of the issues pertaining to her Ex’s death. If the funds (life insurance, IRA, checking account) are put into a blocked account, does anyone think the court would insist that bio mother be the conservator? It seems there is so little money at stake, the bio mom would not want to go through the hassle of establishing a conservatorship for this limited purpose.<br>
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Has anyone tried this? Would the Conservatorship seem like a way to avoid probate?<br>
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I’m just wondering what the most cost-effective way would be for the grandparents to get the assets for the children, to be then placed in a blocked college account. <br>
<br>
<br>
andrekita<br>
Law Office of F. Andrekita Silva<br>
1325 Fourth Avenue, Suite 2000<br>
Seattle, Washington 98101<br>
206-224-8288<br>
<a href="http://www.seattle-silvalaw.com/">www.seattle-silvalaw.com</a><br>
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