[WSBARP] Administrator/Creditor Pursuing Claim Against WA Property Sold by SS under "Lack of Probate Affidavit."

[JOHN J SULLIVAN]

Listmates:

Bear with me. I'm trying to figure out whether this is even worth pursuing.

"Hypothetical" Fact Pattern: PC bought business from buyer who died before he could be sued for breach of asset sale agreement. Still within two years of death and no SOL problem. But ... SS sold main asset - house - and moved with net proceeds to CA. SS did not open probate, but instead sold house without probate. Title company relied upon a "Lack of Probate Affidavit."

Possible recourse: Petition to be appointed Administrator of Decedent's estate. (Notice to SS in CA of course.) Then, if PC appointed Administrator, file and serve Creditor Claim. Under RCW 11.40.140, claim must be "addressed, resolved, and settled" under RCW 11.96A TEDRA. So far so good. 

Assuming the PC prevails in the TEDRA action and obtains a judgment, can he execute it against the house here in WA now "titled" in the name of the buyer the SS sold it to? The Affidavit is not a deed or other legally enforceable method of conveying title. Arguably, the probate estate has authority to reach the property to satisfy the claims of creditors. The buyer might have recourse against the SS because the Affidavit does not satisfy the requirements of the SWD she used to close the sale? 

Or, would the judgment creditor/Administrator have to take the judgment to CA, maybe open an ancillary probate, and then seek to recover the sales proceeds from SS?

This all sounds maybe effective, but very complex and expensive. I suppose some of the fees involved might be rolled into a TEDRA judgment, but still. I'm not sure it's worth pursuing. 

Anyone have experience chasing a claim against a Decedent in similar circumstances? The Affidavit is a convenient tool, but here it seems to have been abused, and may even have constituted insurance fraud, if a Title Company issued coverage based upon its representation all the liabilities of the Decedent had been satisfied.

Thoughts on a Friday afternoon?

Best regards,

John J. Sullivan

Attorney



Lyons | Sullivan
10655 NE 4th Street, Suite 704
Bellevue, WA  98004

425·451·2400 tel 425-451-7385 faxhttp://www.dljslaw.com/

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