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<p class="MsoNormal"><span style="color:#1F497D">Steve--I think that's all correct; I guess the distinction between your comment and mine is: I suggested that the PR could "agree" with the spouse to choose what part of the entirety of the community property
to put into the trust on a non-pro-rata basis; whereas I think you are pointing out that the PR, having jurisdiction over the whole of the community property and authority to make non-pro-rata distributions, could just do it, without getting the spouse's agreement.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">You're probably right, but I have never actually had a non-spouse PR try to exercise their non-pro-rata authority without consulting with the surviving spouse and doing what s/he wants.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">It's also true, under <a href="https://app.leg.wa.gov/RCW/default.aspx?cite=11.28.030">
RCW 11.28.030</a> the spouse has a 40-day window of time in which to assert the right to administer CP directly, which if exercised, puts the spouse entirely in the driver's seat about what community property to distribute to the trust.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">So maybe a claw back would not <i>
automatically</i> be necessary, but the PR would need to do have some good communication with the spouse, to determine if s/he will cooperate in making sure that the Trust is fully funded. If the spouse doesn't cooperate, I think the PR as Executor of the Will
has an obligation to take whatever legal action is necessary to make sure the spouse doesn't thwart the terms of the Will.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">fax 206-625-9040<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><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""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Stephen A. Brandli<br>
<b>Sent:</b> Thursday, September 12, 2019 10:46 AM<br>
<b>To:</b> 'WSBA Real Property Listserv'<br>
<b>Subject:</b> Re: [WSBARP] TIC or JTWROS?<o:p></o:p></span></p>
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</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Is the following not true?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Husband can devise one-half of the community property, but not necessarily one-half of each asset. The estate can choose to distribute to the wife her one-half interest in the community property using disproportionate asset divisions.
See RCW 11.98.070(15); Estate of Ehlers, 80 Wn. App. 751, 763 (1996); see also Estate of Westall, 4 Wn. App.2d 877 (2018) (spouse can sell deceased’s interest in community property with court approval despite contrary provision in deceased’s will). The will
does not change this. Further, the wife has a right to administer the community property. See RCW 11.28.030.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">RCW 11.04.250 would vest all of the community property in the surviving spouse absent a will of the deceased that says otherwise, which apparently is the case here. See Estate of Haviland, 117 Wn.2d 68, 79—80 (2013).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">So a claw back would be required only if needed to distribute one-half of the total community estate to the trust.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"> Steve Brandli<o:p></o:p></p>
<p class="MsoNormal"> Brandli Law PLLC<o:p></o:p></p>
<p class="MsoNormal"> Friday Harbor, Washington<o:p></o:p></p>
<p class="MsoNormal"><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">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Eric Nelsen<br>
<b>Sent:</b> Thursday, September 12, 2019 9:36 AM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> Re: [WSBARP] TIC or JTWROS?<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">I agree you need to claw it back; the husband's half interest should be transferred into the trust. Though if the Will/Trust terms allow it, I suppose you could instead make an alternative agreement with the
surviving spouse, to other assets of equivalent value to put into the trust as a substitute.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Some technical supporting points that don't change the result:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">If a parcel of real property is community property between two living spouses, it's not governed by tenant in common rules. Instead, management and control is governed by
<a href="https://app.leg.wa.gov/RCW/default.aspx?cite=26.16.030">RCW 26.16.030</a>. The actual name on the deed, even if it's only in one spouse's name, doesn't actually matter much except for some nuances relating to notice to third parties; see e.g.
<a href="https://app.leg.wa.gov/RCW/default.aspx?cite=26.16&full=true#26.16.095">
RCW 26.16.095 and RCW 26.16.100</a>. <u>See also</u> <u>In re Estate of Borghi</u>, 167 Wn.2d 480, 219 P.3d 932 (2009), which states that the names on the deed don't really mean that much when it comes to determining characterization of the property as separate
or community.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">But once the first spouse dies, real property immediately vests in the surviving spouse as the heir at law to all community property,
<a href="https://app.leg.wa.gov/RCW/default.aspx?cite=11.04.250">RCW 11.04.250</a>, but subject to all debts, etc., of the decedent, and if a probate is commenced the PR ends up with control and can effectively divest the spouse.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">When the probate commences it acquires jurisdiction over
<u>the entirety of community property</u>. The death of a spouse terminates the marital relationship and the "marital community."
<u>Bank of Montreal v. Buchanan</u>, 32 Wn. 480, 73 P. 482 (1903); <u>see also</u>
<u>Washington State Bar Assn. Community Property Deskbook</u> (4th ed. 2014) (hereinafter "CP Deskbook"), Sec. 4.11. At death of the first spouse, the community "ceases to exist."
<u>Sutton v. Hirvonen</u>, 113 Wn.2d 1, 6, 775 P.2d 448 (1989). The first deceased spouse's Estate accordingly has jurisdiction over all community property and community liability, not just the decedent's half, in order to dispose of all community matters.
<u>Ruth v. Dight</u>, 75 Wn.2d 660, 670, 453 P.2d 631 (1969) (claim against the community cannot be pursued against surviving spouse if not also properly brought against the deceased spouse's estate);
<u>Gilliam v. City of Centralia</u>, 14 Wn.2d 523, 531, 128 P.2d 661 (1942) (deceased spouse's Personal Representative, not the surviving spouse, has authority to pursue a community claim);
<u>Magee v. Big Bend Land Co.</u>, 51 Wash. 406, 408, 99 P. 16 (1909) (administration of first spouse's estate had jurisdiction and authority to sell the entire community real property).
<u>See also</u> <u>CP Deskbook</u>, Sec. 4.13.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">So at the end of the probate the PR, in accordance with the Will and assuming all debts, etc., have been paid, could distribute the decedent's one-half interest in the community real estate into the Trust. At
that point, and no sooner, do the tenant-in-common rules apply, to the Trust and the surviving spouse as tenants in common.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></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>Mark Vohr<br>
<b>Sent:</b> Wednesday, September 11, 2019 5:33 PM<br>
<b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBARP] TIC or JTWROS?<o:p></o:p></span></p>
</div>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif"">I have a title person in Jefferson county telling me it’s common practice in title companies when property is acquired as “husband and wife” (the type of ownership – TIC or JTWROS is not
indicated in the deed) to pass the ownership to the surviving spouse without any kind of conveyance since Washington is a community property state, all they require is proof of death of the spouse. Title has always done this, we’ve used death certificates,
lack of probate affidavit’s or actual probates as proof of death of the spouse and then just vest the ownership in the surviving spouse.<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"">My understanding is that a transfer to H&W (or any conveyance to more than one person) without indicating the type of ownership creates a tenancy in common, RCW 64.28.020. In our case
the decedent left his entire estate in trust for his surviving spouse, which I would conclude would include his TIC share in real property. Title transferred it all to the surviving spouse. It would seem we have to claw it back.
<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"">Thoughts? Thanks in advance.
<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""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif"">Regards,
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman","serif"">Mark<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-family:"Bradley Hand ITC""><o:p> </o:p></span></p>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt;font-family:"Bradley Hand ITC"">Ohana Fiduciary Corp.<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt;font-family:"Bradley Hand ITC"">A Washington Trust Company<o:p></o:p></span></p>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Bradley Hand ITC"">Mark C. Vohr, J.D., CPG, Principal<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Bradley Hand ITC"">PO Box 33710 Seattle, WA 98133<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Bradley Hand ITC"">T: (206) 782-1189 F: (206) 782-1434<o:p></o:p></span></p>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:12.0pt;font-family:"Bradley Hand ITC""><a href="https://ohanafc.sharefile.com/r-r48c92bafe5243b0a">Click here</a> to securely upload files<o:p></o:p></span></p>
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