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<p class="MsoNormal"><span style="color:#1F497D">Rob, I read through your case and, unless I missed it, speaks entirely to funding of the trust and not to an LLC. Why do you extend the holding in this bankruptcy case regarding funding of a trust to an LLC?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><a name="Paul_Neumiller"><span style="color:#1F497D"><img width="250" height="150" id="_x0000_i1026" src="cid:image002.jpg@01D357B0.617BA4B0"></span></a><span style="color:white"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Rob Rowley<br>
<b>Sent:</b> Tuesday, November 7, 2017 9:18 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Execution on judgment<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546A">Any self-settled asset protection LLC/Trust is subject to successful creditor attack.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546A"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546A">See In re Huber</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546A"><a href="http://courtweb.pamd.uscourts.gov/courtwebsearch/wawb/pxQPkhFD0j.pdf">http://courtweb.pamd.uscourts.gov/courtwebsearch/wawb/pxQPkhFD0j.pdf</a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546A"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="line-height:12.0pt"><b><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A">Robert R. Rowley</span></b><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A"> | Attorney at Law</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A">7 S. Howard St, Suite 218</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A">Spokane, WA 99201</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A">Telephone: (509) 252-5074</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A">Mobile: (509) 994-1143</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A">Facsimile: (509) 928-3084</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546A">Email:
</span><span style="color:#44546A"><a href="mailto:rob@rowleylegal.com"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue">rob@rowleylegal.com</span></a></span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546A"> </span><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> [mailto:<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Eric Nelsen<br>
<b>Sent:</b> Tuesday, November 07, 2017 8:49 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] Execution on judgment<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Wait, maybe I am all wet, but as I read that statute, it
<b><i>is</i></b> possible to foreclose on the member's transferable interest in the LLC, per
<a href="http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.256">RCW 25.15.256(2)</a>. Subsection 1 allows a charging order akin to a garnishment on the member's interest, and subsection 2 allows foreclosure and sale/seizure of the interest itself.
Yes?</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Admittedly the foreclosure only takes the debtor's "transferable interest," but if it's a single member LLC, if I represented a creditor I would foreclose on the 100% transferable interest. Then the creditor
would be a 100% transferee, there would be no existing "members" with voting rights, and therefore the creditor has the right to vote to be admitted as a member within 90 days after the transfer, per
<a href="http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.265">RCW 25.15.265(4)</a>. The judgment creditor would thus effectively seize ownership and control of the LLC and its assets.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Do you think that would work?</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Sincerely,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric C. Nelsen</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">SAYRE LAW OFFICES, PLLC</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">1417 31st Ave South</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Seattle WA 98144-3909</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">phone 206-625-0092</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">fax 206-625-9040</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Robert Pampell<br>
<b>Sent:</b> Monday, November 06, 2017 10:43 PM<br>
<b>To:</b> 'WSBA Real Property Listserv'<br>
<b>Subject:</b> Re: [WSBARP] Execution on judgement</span><o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">No. See RCW Sec. <span lang="EN">25.15.256, esp. subsection (5). Known as “charging order exclusivity,” this subsection was added in the amendments effective 1/1/16.</span><o:p></o:p></p>
<p class="MsoNormal"><span lang="EN"> </span><o:p></o:p></p>
<p class="MsoNormal"><span lang="EN">While you are at it, your client should be advised, as should all LLC clients should be, that single member LLCs “make lousy asset protection vehicles”, to quote a prominent national creditor rights/asset protection expert.
He was addressing the typical veil-piercing and alter ego flavor of asset protection, rather than the so-called “reverse veil-piercing” variety addressed by the section cited above.</span><o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:6.0pt;font-family:"Arial",sans-serif;color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><img border="0" width="152" height="59" id="Picture_x0020_0" src="cid:image003.jpg@01D357B0.617BA4B0" alt="21 Law logo - color (no tag) FB size for letterhead.jpg"></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:6.0pt;font-family:"Arial",sans-serif;color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Robert Pampell, Attorney</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">21st Century Law Office (r)</span><o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#365F91">19125 Northcreek Parkway, Suite 120</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#365F91">Bothell, WA 98011</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">voice: 425-329-2629<br>
fax: 877-640-6403<br>
cell: 425-501-4784<br>
email: </span><span style="color:#1F497D"><a href="mailto:rpampell@swcp.com" title="mailto:rpampell@swcp.com"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">rpampell@swcp.com</span></a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><a href="http://www.linkedin.com/in/robertpampell"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">http://www.linkedin.com/in/robertpampell</span></a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><a href="http://www.21stlawoffice.com/"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">www.21stLawOffice.com</span></a></span><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Craig Gourley<br>
<b>Sent:</b> Monday, November 06, 2017 3:41 PM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBARP] Execution on judgement<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Listmates, <o:p></o:p></p>
<p class="MsoNormal">Client has a judgment against him personally and wants to acquire real property in a single member LLC. I know the judgment does not attach directly to the real property. My recollection is that the creditor can obtain a charging order
against the LLC and any distributions to the member would go to the judgment creditor. Can the judgment creditor execute against the personal property interest of the “ membership” thereby taking ownership of the LLC and the property it contains? Thanks
in advance for your insight. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt">Gourley Law Group</span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt">Snohomish Escrow</span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt">The Exchange Connection</span></b><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold"">1002 10<sup>th</sup> Street / PO Box 1091</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold"">Snohomish, WA 98291</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold"">360.568.8092 fax</span><o:p></o:p></p>
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