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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Just to follow up – I like Bruce’s suggestion as a viable alternative to mine as is involved a bit less of a commitment to one course of action. One of the things you might
consider doing in your petition for instructions, is ask the court to appoint a probate GAL to investigate the allegations of incapacity. See RCW 11.76.080.
<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"><span style="font-family:"Times New Roman",serif">Regards,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Mark<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Mark C. Vohr, J.D. CPGC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Ohana Fiduciary Corporation<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">A Washington Trust Company<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">155 NE 100<sup>th</sup> St., Suite 209<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Seattle, WA 98125<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif">Telephone: (206) 782-1189<o:p></o:p></span></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>Bruce Moen<br>
<b>Sent:</b> Wednesday, October 11, 2023 2:03 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Power of Executor - beneficiary dealing with addiction<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-size:12.0pt;font-family:"Aptos",sans-serif;color:black">Hi Mark and all,
<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">Here are my thoughts which come from a self-interest viewpoint: Namely, not getting sued to recover the amount of funds (out of my pocket) distributed to a known
junkie who forthwith totally blows the entire inheritance.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">The scenario is that I am serving as a successor PR in a messy estate. The time comes for distribution and one of the distributees is homeless, an addict, aberrational
behavior from alleged (but undiagnosed) mental illness, whatever.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">My view is that a negligence action may lie against the now discharged PR a year or two later by either the distributee or their conservator and at anytime within
the Statue of Limitations. That action would be a plenary civil action against the former PR in their personal capacity. I think that notice of the discharge may not apply to a de facto incapacitated person on due process grounds. I am not sure whether the
defense of such an action would be covered by my E&O carrier. The coverage does include serving as a fiduciary and other hats worn by court appointments, but I have always been a little uneasy whether the company would accept the tender of the defense of a
negligent distribution. Hence, what to do?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">Here is what I have done several times over the past 30 years. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">I petition the court for instructions. The Petition alleges on information and belief that a potential issue exists as to fitness to receive the funds. I may not
spell out all of the allegations and may or may or may not attribute the sources of the allegations. This is discretionary depending upon the facts, the family dynamics, and the wishes of the family members reporting the allegations to me. But regardless of
what I put in the petition, I maintain careful documentation within my file. I also prepare that documentation with an eye to be admissible evidence in a later potential lawsuit. My file documents are created and maintained in a manner that complies with
the foundation requirements for a potential offer in evidence in the event of a future lawsuit.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">The petition will candidly confess that it may, in hindsight, be considered negligence to distribute funds to such a person. This is delicate for two reasons: 1)
you do not want your language to be construed against you in a later potential lawsuit and 2) there is often some miscreant remainderman distributee who brings a petition to disallow your fees on the basis that these fees were incurred by acting in your own
self-interest. (I see no real issue with this later point because of what I call "permissible conflicts" within fiduciary work.)<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">I also call upon the court to use its discretion and the petition makes only suggestions of how to instruct me at the hearing on the petition. I include among the
suggestions the inherent power of the court to sua sponte order any other instruction that the court deems reasonable. The suggestions include such actions as appointing a lawyer to investigate the allegations against the distributee, interview the distributee,
etc. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">There are two reasons that I have only suggestions and invite the court to use the court's own discretion: 1) I do not want any responsibility to be laid at my feet
for whatever the court instructs me and 2) I do not want the court to look at me, blink, furrow the court's brow, and ask "What do you want me to do about it?"<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">Be prepared for serious blowback from the bench at the hearing. I've been challenged from the bench that the court has no such jurisdiction (wrong, but bone up on
11.96A.020-.040), that the court has insufficient facts to rule upon the petition (draft carefully), the court trying to pass the buck back to the PR (stand firm that you need the instruction) or anything else.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">An important secondary purpose of the petition is to use the petition and order in the defense of any future action that may be brought. Essentially, the petition
and order are an Exhibit A to the Answer that would be filed. You want the Exhibit A to say: "Hey, I saw the issue and I took reasonable steps prior to the distribution. I followed the court's instruction and I am not negligent." <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">Thankfully, I have never be sued. But I have occasions to distribute funds to persons about whom I had my doubts. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">And to anyone thinking of asking whether I have any forms, the answer is No. Such a petition should be unique to the facts.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black">Any comments or suggestions are welcome. The issue is serious and I agree with Mark's post above.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"> Bruce Moen<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Aptos",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="color:black">From:</span></b><span style="color:black">
<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>> on behalf of Mark Vohr <<a href="mailto:mcv@ohanafc.com">mcv@ohanafc.com</a>><br>
<b>Sent:</b> Wednesday, October 11, 2023 11:08 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] Power of Executor - beneficiary dealing with addiction</span>
<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
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<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Brent –
</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> In our experience, the short answer is no – the executor does not have the option to convey under alternative means. However (and there is often a however)
there is always the possibility of getting the beneficiary to agree to have their distribution put into trust. We have had happen on occasion simply by agreement when the beneficiary has some clarity of insight into their own situation. If the beneficiary
is not agreeable, then a little more effort is involved as you are going to have to engage the conservator statutes to get there. Under the former guardianship statutes, addiction was a basis for a finding of incapacity. It is not expressly stated in the
UGA, but the substantial risk of harm because of addiction is still the route one goes to get there.
</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> What your client is going to need is clear and convincing evidence of substantial risk or harm due to addiction. This is important both because it is the required
burden of proof and one does not want to risk a finding that the petition was filed in bad faith. So, solid investigation is essential, and one needs to have clear and convincing evidence to support a substantial risk of harm. Under this plan, you may not
end up with a conservatorship as a trust is a perfectly suitable less restrictive alternative provided the beneficiary can execute one and agrees to a trust as an alternative to a conservatorship. Under that scenario the court would dismiss the conservatorship
petition for the less restrictive alternative. </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> Hope that helps. Always curious to know what others think of this dilemma.
</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">Regards,</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">Mark</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">Mark C. Vohr, J.D. CPGC</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">Ohana Fiduciary Corporation</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">A Washington Trust Company</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">155 NE 100<sup>th</sup> St., Suite 209</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">Seattle, WA 98125</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-family:"Times New Roman",serif">Telephone: (206) 782-1189</span><o:p></o:p></p>
<p class="xmsonormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"> </span><o:p></o:p></p>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="xmsonormal"><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>Brent Williams-Ruth<br>
<b>Sent:</b> Wednesday, October 11, 2023 10:23 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] Power of Executor - beneficiary dealing with addiction<o:p></o:p></p>
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<p class="xmsonormal"> <o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif">Greetings List Member - </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif"><br>
I was looking through 11.48 et seq and not finding what I was hoping for......hoping someone may be able to assist with some directional guidance. </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif">Have a simple estate, everything is going great, except one of the beneficiaries is in the midst of a substance abuse battle and they are not winning (currently). The Executor is concerned about
giving this person approximately $300k in the form of a cashier's check. </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif">The Will was one created by a low-cost provider and gives no express powers or authorization to make any adjustments to how an inheritance should be conveyed. </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif">Short of going to court and establishing a conservatorship-style situation. Is there statutory authority for an Executor to convey through alternate means?</span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif">Appreciate any guidance!</span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
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<p class="xmsonormal"><span style="font-family:"Arial",sans-serif">Brent</span><o:p></o:p></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"> (pronouns: 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><span style="font-family:"Times New Roman",serif">Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003</span></b><o:p></o:p></p>
<p><b><span style="font-family:"Times New Roman",serif;color:red">**EFFECTIVE IMMEDIATELY**</span></b><b><span style="font-family:"Times New Roman",serif"> All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA
98063 </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>
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