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<p class="MsoNormal">Thanks Setareh. Yes, I would compile a separate list of potential creditors as well, for the same reasons. It’s just not something I would put into the formal statutory inventory.<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"><span style="color:#467886">eric@sayrelawoffices.com</span></a><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Setareh Mahmoodi<br>
<b>Sent:</b> Tuesday, January 6, 2026 12:26 PM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> Re: [WSBAPT] Probate Inventory - "Mortgage, notes, and other written evidences of debt"<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Garamond",serif;color:black">Hi Eric,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Garamond",serif;color:black">I think your understanding is correct and consistent with how I have always handled inventories. We do not include unsecured debts in the estate inventory.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Garamond",serif;color:black">I do, however, prepare a separate internal list of creditors within the first couple of months of working with the PR so that we have a clear picture of the estate’s liabilities for
reference, sending notices, and file management. That list is not part of the formal inventory.<o:p></o:p></span></p>
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<p class="elementtoproof" style="background:white"><b><span style="font-family:"Garamond",serif;color:#222222;background:white">Best regards, </span></b><o:p></o:p></p>
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<p class="MsoNormal" style="background:white"><b><span style="font-size:14.0pt;font-family:"Garamond",serif;color:#222222">Setareh Mahmoodi </span></b><span style="font-size:14.0pt;font-family:"Garamond",serif;color:#222222"><o:p></o:p></span></p>
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<p class="elementtoproof" style="background:white"><b><span style="font-family:"Garamond",serif;color:#222222">Attorney at Law </span></b><o:p></o:p></p>
<p class="elementtoproof" style="background:white"><b><span style="font-size:14.0pt;font-family:"Garamond",serif;color:#222222">Law Offices of Setareh Mahmoodi, PS</span></b><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;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 Eric Nelsen <<a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a>><br>
<b>Sent:</b> Tuesday, January 6, 2026 11:54 AM<br>
<b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a> <<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] Probate Inventory - "Mortgage, notes, and other written evidences of debt"</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">Hello all— Happy New Year! General question about what goes on the inventory.<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">In the past few years I have been seeing more and more Estate Inventories that, under the section “Mortgage, Notes, etc.,” list the debts that the decedent owed to someone, rather than the debts that someone owed to the decedent. In some
cases I’ve seen debts like credit card balances listed, even though those would only be valid debts if a proper creditor claim were filed.<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">My understanding is that the inventory category in <a href="https://app.leg.wa.gov/RCW/default.aspx?cite=11.44.015">
RCW 11.44.015(1)(c)</a> refers to debts that are owed <u>to the decedent</u>, since the decedent’s right to receive payment is an asset of the Estate. Am I wrong?<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">While the statute does require inclusion of “statement of all encumbrances, liens, or other secured charges against any item,” my understanding is that the secured encumbrance on an asset is listed with the asset itself, since the PR is
to show the “fair net value” of the item, net of the encumbrances. I think that unsecured debts of the decedent like credit card balances, personal loans, etc., are not included in the Inventory at all.<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">So, for a house with a mortgage, the inventory would list the house under category (1)(a) “Real Property” and include the DOD balance on the mortgage in that same spot, and show the fair value net of the mortgage. The mortgage would
<u>not</u> be listed in (1)(c), because the mortgage is a debt the decedent owes, not an asset.<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">I did look at WSBA <u>Probate Procedure and Tax Manual</u> deskbook (3d ed. 2009), and it’s not super clear about it but it does seem to agree that it should be a list of the decedent’s rights to receive payment, not a list of decedent’s
debts. See Ch. 3.A.2, and the example inventory at Sec. 3.F.3. (Actually, the Deskbook combines 11.44.015(1)(c) and (1)(d) to create a category of “mortgages, notes, and cash” instead of separating the bank accounts from the debts owed to decedent.)<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">Is there other authority out there, that suggests an Inventory should include unsecured debts, or that it should include a separate categorical list of the debts owed by the decedent?<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">Sincerely,<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">Eric<o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
<p class="xmsonormal">Eric C. Nelsen<o:p></o:p></p>
<p class="xmsonormal">Sayre Law Offices, PLLC<o:p></o:p></p>
<p class="xmsonormal">1417 31st Ave South<o:p></o:p></p>
<p class="xmsonormal">Seattle WA 98144-3909<o:p></o:p></p>
<p class="xmsonormal">206-625-0092<o:p></o:p></p>
<p class="xmsonormal"><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a><o:p></o:p></p>
<p class="xmsonormal"> <o:p></o:p></p>
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