[WSBARP] Deceased Co-signing Mom on Title

[Paul Neumiller]

Listmates, I need input and guidance in a situation.  About 20 years ago,
Son puts Mom on title solely so Mom can co-sign on refinance of residence.
Mom never contributed towards residence (i.e. no taxes, maintenance, or loan
payments)  In fact, Mom never lived in WA.  Mom dies in CO and her estate is
probated in CO.  Mom's Will is silent as to disposition of the residence,
probably because no one realized it. Son tries to sell residence and title
company says problem with title because Mom is still on title.  For various
reasons, title company and Son does not want an Affidavit of Lack of
Probate.  OK..

1.       I could bring a "friendly" quiet title action and name all of Mom's
heirs.  Son tells me that all heirs (Son's siblings) will either not answer
or will sign a Stipulation because they all understand the situation and
don't want an interest in Son's residence.  However, because siblings are
out of state, they have 60 days to answer (or not answer as the case may
be).  (Trying to avoid the heirs giving quitclaim deeds to Son because, I am
told (by the title company) that will incur double excise taxes (once for
quitclaim deeds and once to transfer to buyer of residence). OR

2.       I could open a probate in WA.  Mom never lived here and she died
over two years ago.  Mom's Will gives the residual of Mom's estate "to those
of my children who survive me per capita, or if none of my children shall
survive me, then to my grandchildren.".  I could have each sibling sign
Disclaimers, in effect, leaving the sole asset to be disposed in WA (that
is, the residence) to Son.  Son then transfers the residence to Son by PR
deed (getting the inheritance exclusion to the excise tax) and then close up
probate quickly.  Another factor that may be relevant is that even if the
disclaimers are considered "gifts," the equity of each disclaimer (i.e. FMV
of residence minus loan balance) is less than $14K.  (As a side question
because it came up, is a disclaimer a "gift?")

 

OK, I am leaning towards the probate route.  Any thoughts or missed issues?


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