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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Very interesting situation. I have never had such a situation, but I have heard occasional comments from those who have.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Despite my ignorance, I do have a few comments/questions:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">I assume the vendor is requiring the heir to suffer a deep discount in order to gain an acceleration of the (reduced) inheritance. I assume you will see a copy of an assignment,
but I also assume that the price being charged will not be disclosed. The price will be in a separate confidential document. At least that is my guess.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Is there a will, or is this intestacy? If it is a will, does it have a spendthrift clause that might interfere with this arrangement? All of the trusts I draft, and all
of the wills I draft, have spendthrift clauses. At least last time I looked.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">I would guess that the vendor is very familiar with spendthrift clauses. And I would guess that they have legal counsel who is adept at getting around spendthrift clauses.
Or perhaps they avoid estates that have spendthrift clauses? <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">I once had a trust where a beneficiary went through bankruptcy, and an “investor” back east purchased the interest of the beneficiary from the bankrupt estate. I did not
think the purchase was valid, due to the spendthrift clause, but the investor was very aggressive and another family member ended up buying out the investor just to get rid of him. The investor appeared to be in the business of such purchases. And I am somewhat
certain that the vendor in this case is in that exact business and knows how to be aggressive.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Again, this is based on very little real knowledge. I hope someone with some serious experience will enlighten us all.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Or maybe I should go into this business after I retire . . . . but maybe I need to learn a little bit more about it.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Phil Jones<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="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"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;mso-ligatures:none">Philip N. Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;mso-ligatures:none">Duffy Kekel LLP<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;mso-ligatures:none">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;mso-ligatures:none">Portland, OR 97204<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;mso-ligatures:none"><a href="mailto:pjones@duffykekel.com"><span style="color:#0563C1">pjones@duffykekel.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;mso-ligatures:none">(503) 226-1371 – office<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;mso-ligatures:none">(503) 853-1482 – cell<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;mso-ligatures:none">(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><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Roger Hawkes<br>
<b>Sent:</b> Wednesday, August 16, 2023 2:35 PM<br>
<b>To:</b> Probate and Trust Listserve <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] third party 'advance'<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">An heir in one of our probates has requested an advance of part of his inheritance by soliciting same from a third party vendor who would get repaid when the inheritance is distributed. What perils and pitfalls should we be considering?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Roger Hawkes, WSBA # 5173<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Sky Valley Lawyers, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Physical Address: 423 Main Street<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Mailing Address: Box 351<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Both in Sultan, WA 98294<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Phone 360 799 6438<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Email: <a href="mailto:roger@skyvalleylawyers.com">
roger@skyvalleylawyers.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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