AN
ACT Relating to probate and trust matters; amending RCW 11.02.005, 11.07.010,
11.08.170, 11.12.040, 11.12.080, 11.12.110, 11.12.120, 11.12.160, 11.12.180,
11.20.070, 11.24.010, 11.24.040, 11.28.120, 11.28.237, 11.40.010, 11.40.013,
11.40.015, 11.40.040, 11.40.080, 11.48.010, 11.56.050, 11.68.010, 11.96.009,
11.96.020, 11.96.050, 11.96.060, 11.96.070, 11.96.080, 11.96.090, 11.96.100,
11.96.110, 11.96.130, 11.96.140, 11.96.160, 11.96.170, 11.96.180, 11.98.200,
11.98.240, 11.100.035, 82.32.240, 83.100.020, and 83.110.010; adding new
sections to chapter 11.12 RCW; adding a new section to chapter 11.94 RCW;
adding new chapters to Title 11 RCW; creating a new section; repealing RCW
11.12.050, 11.12.090, 11.12.130, 11.12.140, 11.12.150, 11.12.200, 11.12.210, 11.56.015,
11.56.140, 11.56.150, 11.56.160, and 11.56.170; providing an effective date;
and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 11.02.005 and 1993 c
73 s 1 are each amended to read as follows:
When
used in this title, unless otherwise required from the context:
(1)
"Personal representative" includes executor, administrator, special
administrator, and guardian or limited guardian and special representative.
(2)
"Net estate" refers to the real and personal property of a decedent
exclusive of homestead rights, exempt property, the family allowance and
enforceable claims against, and debts of, the deceased or the estate.
(3)
"Representation" refers to a method of determining distribution in
which the takers are in unequal degrees of kinship with respect to the
intestate, and is accomplished as follows: After first determining who, of
those entitled to share in the estate, are in the nearest degree of kinship,
the estate is divided into equal shares, the number of shares being the sum of
the number of persons who survive the intestate who are in the nearest degree
of kinship and the number of persons in the same degree of kinship who died
before the intestate but who left issue surviving the intestate; each share of
a deceased person in the nearest degree shall be divided among those of the ((intestate's))
deceased person's issue who survive the intestate and have no ancestor
then living who is in the line of relationship between them and the intestate,
those more remote in degree taking together the share which their ancestor
would have taken had he or she survived the intestate. Posthumous children are
considered as living at the death of their parent.
(4)
"Issue" includes all the lawful lineal descendants of the ancestor
and all lawfully adopted children.
(5)
"Degree of kinship" means the degree of kinship as computed according
to the rules of the civil law; that is, by counting upward from the intestate
to the nearest common ancestor and then downward to the relative, the degree of
kinship being the sum of these two counts.
(6)
"Heirs" denotes those persons, including the surviving spouse, who
are entitled under the statutes of intestate succession to the real and
personal property of a decedent on the decedent's death intestate.
(7)
"Real estate" includes, except as otherwise specifically provided
herein, all lands, tenements, and hereditaments, and all rights thereto, and
all interest therein possessed and claimed in fee simple, or for the life of a
third person.
(8)
"Will" means an instrument validly executed as required by RCW
11.12.020 ((and includes all codicils)).
(9)
"Codicil" means ((an instrument that is validly executed in the
manner provided by this title for a will and that refers to an existing will
for the purpose of altering or changing the same, and which need not be
attached thereto)) a will that modifies or partially revokes an existing
earlier will. A codicil need not refer to or be attached to the earlier will.
(10)
"Guardian" or "limited guardian" means a personal
representative of the person or estate of an incompetent or disabled person as
defined in RCW 11.88.010 and the term may be used in lieu of "personal
representative" wherever required by context.
(11)
"Administrator" means a personal representative of the estate of a
decedent and the term may be used in lieu of "personal
representative" wherever required by context.
(12)
"Executor" means a personal representative of the estate of a
decedent appointed by will and the term may be used in lieu of "personal
representative" wherever required by context.
(13)
"Special administrator" means a personal representative of the estate
of a decedent appointed for limited purposes and the term may be used in lieu
of "personal representative" wherever required by context.
(14)
"Trustee" means an original, added, or successor trustee and includes
the state, or any agency thereof, when it is acting as the trustee of a trust
to which chapter 11.98 RCW applies.
(15) "Nonprobate
asset" means those rights and interests of a person having beneficial
ownership of an asset that pass on the person's death under a written
instrument or arrangement other than the person's will. "Nonprobate
asset" includes, but is not limited to, a right or interest passing under
a joint tenancy with right of survivorship, joint bank account with right of
survivorship, payable on death or trust bank account or security, deed or
conveyance if possession has been postponed until the death of the person,
trust of which the person is grantor and that becomes effective or irrevocable
only upon the person's death, community property agreement, individual
retirement account or bond, or note or other contract the payment or
performance of which is affected by the death of the person. "Nonprobate
asset" does not include: A payable-on-death provision of a life insurance
policy, annuity, or other similar contract, or of an employee benefit plan; a
right or interest passing by descent and distribution under chapter 11.04 RCW;
a right or interest if, before death, the person has irrevocably transferred
the right or interest, the person has waived the power to transfer it or, in
the case of contractual arrangement, the person has waived the unilateral right
to rescind or modify the arrangement; or a right or interest held by the person
solely in a fiduciary capacity.
(16)
"Internal Revenue Code" means the United States Internal Revenue Code
of 1986, as amended or renumbered on ((July 25, 1993)) the effective
date of this section.
(((16)))
Words that import the singular number may also be applied to the plural of
persons and things.
(((17)))
Words importing the masculine gender only may be extended to females also.
Sec. 2. RCW 11.07.010 and 1993 c
236 s 1 are each amended to read as follows:
(1)
This section applies to all nonprobate assets, wherever situated, held at the
time of entry by a superior court of this state of a decree of dissolution of
marriage or a declaration of invalidity.
(2)(a)
If a marriage is dissolved or invalidated, a provision made prior to that event
that relates to the payment or transfer at death of the decedent's interest in
a nonprobate asset in favor of or granting an interest or power to the
decedent's former spouse is revoked. A provision affected by this section must
be interpreted, and the nonprobate asset affected passes, as if the former
spouse failed to survive the decedent, having died at the time of entry of the
decree of dissolution or declaration of invalidity.
(b)
This subsection does not apply if and to the extent that:
(i)
The instrument governing disposition of the nonprobate asset expressly provides
otherwise;
(ii)
The decree of dissolution or declaration of invalidity requires that the
decedent maintain a nonprobate asset for the benefit of a former spouse or
children of the marriage, payable on the decedent's death either outright or in
trust, and other nonprobate assets of the decedent fulfilling such a
requirement for the benefit of the former spouse or children of the marriage do
not exist at the decedent's death; or
(iii)
If not for this subsection, the decedent could not have effected the revocation
by unilateral action because of the terms of the decree or declaration, or for
any other reason, immediately after the entry of the decree of dissolution or
declaration of invalidity.
(3)(a)
A payor or other third party in possession or control of a nonprobate asset at
the time of the decedent's death is not liable for making a payment or
transferring an interest in a nonprobate asset to a decedent's former spouse
whose interest in the nonprobate asset is revoked under this section, or for
taking another action in reliance on the validity of the instrument governing
disposition of the nonprobate asset, before the payor or other third party has
actual knowledge of the dissolution or other invalidation of marriage. A payor
or other third party is liable for a payment or transfer made or other action
taken after the payor or other third party has actual knowledge of a revocation
under this section.
(b)
This section does not require a payor or other third party to pay or transfer a
nonprobate asset to a beneficiary designated in a governing instrument affected
by the dissolution or other invalidation of marriage, or to another person
claiming an interest in the nonprobate asset, if the payor or third party has
actual knowledge of the existence of a dispute between the former spouse and
the beneficiaries or other persons concerning rights of ownership of the
nonprobate asset as a result of the application of this section among the
former spouse and the beneficiaries or among other persons, or if the payor or
third party is otherwise uncertain as to who is entitled to the nonprobate
asset under this section. In such a case, the payor or third party may,
without liability, notify in writing all beneficiaries or other persons
claiming an interest in the nonprobate asset of either the existence of the
dispute or its uncertainty as to who is entitled to payment or transfer of the
nonprobate asset. The payor or third party may also, without liability, refuse
to pay or transfer a nonprobate asset in such a circumstance to a beneficiary
or other person claiming an interest until the time that either:
(i)
All beneficiaries and other interested persons claiming an interest have
consented in writing to the payment or transfer; or
(ii)
The payment or transfer is authorized or directed by a court of proper
jurisdiction.
(c)
Notwithstanding subsections (1) and (2) of this section and (a) and (b) of this
subsection, a payor or other third party having actual knowledge of the
existence of a dispute between beneficiaries or other persons concerning rights
to a nonprobate asset as a result of the application of this section may
condition the payment or transfer of the nonprobate asset on execution, in a
form and with security acceptable to the payor or other third party, of a bond
in an amount that is double the fair market value of the nonprobate asset at
the time of the decedent's death or the amount of an adverse claim, whichever
is the lesser, or of a similar instrument to provide security to the payor or
other third party, indemnifying the payor or other third party for any
liability, loss, damage, costs, and expenses for and on account of payment or
transfer of the nonprobate asset.
(d)
As used in this subsection, "actual knowledge" means, for a payor or
other third party in possession or control of the nonprobate asset at or
following the decedent's death, written notice to the payor or other third
party, or to an officer of a payor or third party in the course of his or her
employment, received after the decedent's death and within a time that is
sufficient to afford the payor or third party a reasonable opportunity to act
upon the knowledge. The notice must identify the nonprobate asset with
reasonable specificity. The notice also must be sufficient to inform the payor
or other third party of the revocation of the provisions in favor of the
decedent's spouse by reason of the dissolution or invalidation of marriage, or
to inform the payor or third party of a dispute concerning rights to a
nonprobate asset as a result of the application of this section. Receipt of
the notice for a period of more than thirty days is presumed to be received
within a time that is sufficient to afford the payor or third party a reasonable
opportunity to act upon the knowledge, but receipt of the notice for a period
of less than five business days is presumed not to be a sufficient time for
these purposes. These presumptions may be rebutted only by clear and
convincing evidence to the contrary.
(4)(a)
A person who purchases a nonprobate asset from a former spouse or other person,
for value and without actual knowledge, or who receives from a former spouse or
other person payment or transfer of a nonprobate asset without actual knowledge
and in partial or full satisfaction of a legally enforceable obligation, is
neither obligated under this section to return the payment, property, or
benefit nor is liable under this section for the amount of the payment or the
value of the nonprobate asset. However, a former spouse or other person who,
with actual knowledge, not for value, or not in satisfaction of a legally
enforceable obligation, receives payment or transfer of a nonprobate asset to
which that person is not entitled under this section is obligated to return the
payment or nonprobate asset, or is personally liable for the amount of the
payment or value of the nonprobate asset, to the person who is entitled to it
under this section.
(b)
As used in this subsection, "actual knowledge" means, for a person
described in (a) of this subsection who purchases or receives a nonprobate
asset from a former spouse or other person, personal knowledge or possession of
documents relating to the revocation upon dissolution or invalidation of
marriage of provisions relating to the payment or transfer at the decedent's
death of the nonprobate asset, received within a time after the decedent's
death and before the purchase or receipt that is sufficient to afford the
person purchasing or receiving the nonprobate asset reasonable opportunity to
act upon the knowledge. Receipt of the personal knowledge or possession of the
documents for a period of more than thirty days is presumed to be received
within a time that is sufficient to afford the payor or third party a
reasonable opportunity to act upon the knowledge, but receipt of the notice for
a period of less than five business days is presumed not to be a sufficient
time for these purposes. These presumptions may be rebutted only by clear and
convincing evidence to the contrary.
(5)
As used in this section, "nonprobate asset" means those rights and
interests of a person having beneficial ownership of an asset that pass on the
person's death under only the following written instruments or arrangements
other than the decedent's will:
(a) A
payable-on-death provision of a life insurance policy, employee benefit plan,
annuity or similar contract, or individual retirement account;
(b) A
payable-on-death, trust, or joint with right of survivorship bank account;
(c) A
trust of which the person is a grantor and that becomes effective or
irrevocable only upon the person's death; or
(d)
Transfer on death beneficiary designations of a transfer on death or pay on
death security, if such designations are authorized under Washington law.
(6)
This section is remedial in nature and applies as of July 25, 1993, to decrees
of dissolution and declarations of invalidity entered after July 24, 1993, and
this section applies as of the effective date of this act to decrees of
dissolution and declarations of invalidity entered before July 25, 1993.
Sec. 3. RCW 11.08.170 and 1990 c
225 s 1 are each amended to read as follows:
Escheat
property may be probated under the provisions of the probate laws of this
state. Whenever such probate proceedings are instituted, whether by special
administration or otherwise, the petitioner shall promptly notify the
department of revenue in writing thereof on forms furnished by the department
of revenue to the county clerks. Thereafter, the department of revenue shall
be served with written notice at least twenty days prior to any hearing on
proceedings involving the valuation or sale of property, on any petition for
the allowance of fees, and on all interim reports, final accounts or petitions
for the determination of heirship. Like notice shall be given of the
presentation of any claims to the court for allowance. Failure to furnish such
notice shall be deemed jurisdictional and any order of the court entered
without such notice shall be void. The department of revenue may waive the provisions
of this section in its discretion. The department shall be deemed to have
waived its right to administer in such probate proceedings under RCW
11.28.120(((3))) (5) unless application for appointment of the
director or the director's designee is made within forty days immediately
following receipt of notice of institution of proceedings.
NEW SECTION. Sec.
4. This chapter applies in
all instances in which no other abatement scheme is expressly provided.
NEW SECTION. Sec.
5. (1) Except as provided in
subsection (2) of this section, property of a decedent abates, without
preference as between real and personal property, in the following order:
(a)
Intestate property;
(b)
Residuary gifts;
(c)
General gifts;
(d)
Specific gifts.
For
purposes of abatement a demonstrative gift, defined as a general gift charged
on any specific property or fund, is deemed a specific gift to the extent of
the value of the property or fund on which it is charged, and a general gift to
the extent of a failure or insufficiency of that property or fund. Abatement
within each classification is in proportion to the amounts of property each of
the beneficiaries would have received if full distribution of the property had
been made in accordance with the terms of the will.
(2)
If the will expresses an order of abatement, or if the testamentary plan or the
express or implied purpose of the devise would be defeated by the order of
abatement stated in subsection (1) of this section, a gift abates as may be
found necessary to give effect to the intention of the testator.
(3)
If the subject of a preferred gift is sold, diminished, or exhausted incident
to administration, not including satisfaction of debts or liabilities according
to their community or separate status under section 7 of this act, abatement
must be achieved by appropriate adjustments in, or contribution from, other
interests in the remaining assets.
(4)
To the extent that the whole of the community property is subject to abatement,
the shares of the decedent and of the surviving spouse in the community
property abate equally.
(5)
If required under section 8 of this act, nonprobate assets must abate with
those disposed of under the will and passing by intestacy.
NEW SECTION. Sec.
6. To the extent that a gift
is to be satisfied out of a source that consists of both separate and community
property, unless otherwise indicated in the will it is presumed to be a gift
from separate and community property in proportion to their relative value in
the property or fund from which the gift is to be satisfied.
NEW SECTION. Sec.
7. (1) A community debt or
liability is charged against the entire community property, with the surviving
spouse's half and the decedent spouse's half charged equally.
(2) A
separate debt or liability is charged first against separate property, and if
that is insufficient against the balance of decedent's half of community
property remaining after community debts and liabilities are satisfied.
(3) A
community debt or liability that is also the separate debt or liability of the
decedent is charged first against the whole of the community property and then
against the decedent's separate property.
(4)
An expense of administration is charged against the separate property and the
decedent's half of the community property in proportion to the relative value
of the property, unless a different charging of expenses is shown to be
appropriate under the circumstances including against the surviving spouse's
share of the community property.
(5)
Property of a similar type, community or separate, is appropriated in
accordance with the abatement priorities of section 5 of this act.
(6)
Property that is primarily chargeable for a debt or liability is exhausted, in
accordance with the abatement priorities of section 5 of this act, before
resort is had, also in accordance with section 5 of this act, to property that
is secondarily chargeable.
NEW SECTION. Sec.
8. (1) If abatement is
necessary among takers of a nonprobate asset, the court shall adopt the
abatement order and limitations set out in sections 5, 6, and 7 of this act,
assigning categories in accordance with subsection (2) of this section.
(2) A
nonprobate transfer must be categorized for purposes of abatement, within the
list of priorities set out in section 5(1) of this act, as follows:
(a)
All nonprobate forms of transfer under which an identifiable nonprobate asset
passes to a beneficiary or beneficiaries on the event of the decedent's death,
such as, but not limited to, joint tenancies and payable‑on‑death
accounts, are categorized as specific bequests.
(b)
With respect to all other interests passing under nonprobate forms of transfer,
each must be categorized in the manner that is most closely comparable to the
nature of the transfer of that interest.
(3)
If and to the extent that a nonprobate asset is subject to the same obligations
as are assets disposed of under the decedent's will, the nonprobate assets
abate ratably with the probate assets, within the categories set out in
subsection (2) of this section.
(4)
If the nonprobate instrument of transfer or the decedent's will expresses a different
order of abatement, or if the decedent's overall dispositive plan or the
express or implied purpose of the transfer would be defeated by the order of
abatement stated in subsections (1) through (3) of this section, the nonprobate
assets abate as may be found necessary to give effect to the intention of the
decedent.
NEW SECTION. Sec.
9. A new section is added to
chapter 11.12 RCW to read as follows:
(1)
If a will fails to name or provide for a child of the decedent who is born or
adopted by the decedent after the will's execution and who survives the
decedent, referred to in this section as an "omitted child", the
child must receive a portion of the decedent's estate as provided in subsection
(3) of this section, unless it appears either from the will or from other clear
and convincing evidence that the failure was intentional.
(2)
In determining whether an omitted child has been named or provided for, the
following rules apply:
(a) A
child identified in a will by name is considered named whether identified as a
child or in any other manner.
(b) A
reference in a will to a class described as the children, descendants, or issue
of the decedent who are born after the execution of the will, or words of
similar import, constitutes a naming of a person who falls within the class. A
reference to another class, such as a decedent's heirs or family, does not
constitute such a naming.
(c) A
nominal interest in an estate does not constitute a provision for a child
receiving the interest.
(3)
The omitted child must receive an amount equal in value to that which the child
would have received under RCW 11.04.015 if the decedent had died intestate,
unless the court determines on the basis of clear and convincing evidence that
a smaller share, including no share at all, is more in keeping with the
decedent's intent. In making the determination, the court may consider, among
other things, the various elements of the decedent's dispositive scheme,
provisions for the omitted child outside the decedent's will, provisions for
the decedent's other children under the will and otherwise, and provisions for
the omitted child's other parent under the will and otherwise.
(4)
In satisfying a share provided by this section, the bequests made by the will
abate as provided in chapter 11.-- RCW (sections 4 through 8 of this act).
NEW SECTION. Sec.
10. A new section is added to
chapter 11.12 RCW to read as follows:
(1)
If a will fails to name or provide for a spouse of the decedent whom the
decedent marries after the will's execution and who survives the decedent,
referred to in this section as an "omitted spouse", the spouse must
receive a portion of the decedent's estate as provided in subsection (3) of
this section, unless it appears either from the will or from other clear and
convincing evidence that the failure was intentional.
(2)
In determining whether an omitted spouse has been named or provided for, the
following rules apply:
(a) A
spouse identified in a will by name is considered named whether identified as a
spouse or in any other manner.
(b) A
reference in a will to the decedent's future spouse or spouses, or words of
similar import, constitutes a naming of a spouse whom the decedent later
marries. A reference to another class such as the decedent's heirs or family
does not constitute a naming of a spouse who falls within the class.
(c) A
nominal interest in an estate does not constitute a provision for a spouse
receiving the interest.
(3)
The omitted spouse must receive an amount equal in value to that which the
spouse would have received under RCW 11.04.015 if the decedent had died
intestate, unless the court determines on the basis of clear and convincing
evidence that a smaller share, including no share at all, is more in keeping
with the decedent's intent. In making the determination the court may
consider, among other things, the spouse's property interests under applicable
community property or quasi-community property laws, the various elements of
the decedent's dispositive scheme, and a marriage settlement or other provision
and provisions for the omitted spouse outside the decedent's will.
(4)
In satisfying a share provided by this section, the bequests made by the will
abate as provided in chapter 11.-- RCW (sections 4 through 8 of this act).
NEW SECTION. Sec.
11. A new section is added to
chapter 11.12 RCW to read as follows:
(1)
If, after making a will, the testator's marriage is dissolved or invalidated,
all provisions in the will in favor of or granting any interest or power to the
testator's former spouse are revoked, unless the will expressly provides
otherwise. Provisions affected by this section must be interpreted, and
property affected passes, as if the former spouse failed to survive the
testator, having died at the time of entry of the decree of dissolution or
declaration of invalidity. Provisions revoked by this section are revived by
the testator's remarriage to the former spouse. Revocation of certain
nonprobate transfers is provided under RCW 11.07.010.
(2)
This section is remedial in nature and applies to decrees of dissolution and
declarations of invalidity entered before, on, or after the effective date of
this act.
Sec. 12. RCW 11.12.040 and 1965 c
145 s 11.12.040 are each amended to read as follows:
(1)
A will, or any part thereof, can be revoked:
(((1)))
(a) By a ((written)) subsequent will that revokes, or
partially revokes, the prior will expressly or by inconsistency; or
(((2)))
(b) By being burnt, torn, canceled, obliterated, or destroyed,
with the intent and for the purpose of revoking the same, by the testator ((himself))
or by another person in ((his)) the presence and by ((his))
the direction of the testator. If such act is done by any person
other than the testator, the direction of the testator and the facts of such
injury or destruction must be proved by two witnesses.
(2)
Revocation of a will in its entirety revokes its codicils, unless revocation of
a codicil would be contrary to the testator's intent.
Sec. 13. RCW 11.12.080 and 1965 c
145 s 11.12.080 are each amended to read as follows:
(1)
If, after making any will, the testator shall ((duly make and)) execute
a ((second)) later will that wholly revokes the former will,
the destruction, cancellation, or revocation of ((such second)) the
later will shall not revive the ((first)) former will,
unless it was the testator's intention to revive it.
(2)
Revocation of a codicil shall revive a prior will or part of a prior will that
the codicil would have revoked had it remained in effect at the death of the
testator, unless it was the testator's intention not to revive the prior will
or part.
(3)
Evidence that revival was or was not intended includes, in addition to a
writing by which the later will or codicil is revoked, the circumstances of the
revocation or contemporary or subsequent declarations of the testator.
Sec. 14. RCW 11.12.110 and 1965 c
145 s 11.12.110 are each amended to read as follows:
Unless
otherwise provided, when any ((estate shall be devised or bequeathed to
any child, grandchild, or other relative of the testator, and such devisee or
legatee shall die before the testator, having lineal descendants who survive
the testator, such descendants shall take the estate, real and personal, as
such devisee or legatee would have done in the case he had survived the
testator; if such descendants are all in the same degree of kinship to the
predeceased devisee or legatee)) property shall be given under a will,
or under a trust of which the decedent is a grantor and which by its terms
becomes irrevocable upon the grantor's death, to any issue of a grandparent of
the decedent and that issue dies before the decedent leaving descendants who
survive the decedent, those descendants shall take that property as the
predeceased issue would have done if the predeceased issue had survived the
decedent. If those descendants are all in the same degree of kinship to the
predeceased issue they shall take equally((,)) or, if of unequal
degree, then those of more remote degree shall take by representation with
respect to ((such)) the predeceased ((devisee or legatee. A
spouse is not a relative under the provisions of this section)) issue.
Sec. 15. RCW 11.12.120 and 1974
ex.s. c 117 s 51 are each amended to read as follows:
((Whenever
any person having died leaving)) (1) If a will ((which has been
admitted to probate or established by an adjudication of testacy, shall by said
will have given, devised or bequeathed unto any person, a legacy or a devise
upon the condition that said person survive him, and not otherwise, such legacy
or devise shall lapse and fall into the residue of said estate to be
distributed according to the residuary clause, if there be one, of said will,
and if there be none then according to the laws of descent, unless said legatee
or devisee, as the case may be, or his heirs, personal representative, or
someone in behalf of such legatee or devisee, shall appear before the court
which is administering said estate within three years from and after the date
the said will was admitted to probate or established by an adjudication of
testacy, and prove to the satisfaction of the court that the said legatee or
devisee, as the case may be, did in fact survive the testator)) makes a
gift to a person on the condition that the person survive the testator and the
person does not survive the testator, then, unless otherwise provided, the gift
lapses and falls into the residue of the estate to be distributed under the
residuary clause of the will, if any, but otherwise according to the laws of
descent and distribution.
(2)
If the will gives the residue to two or more persons, the share of a person who
does not survive the testator passes, unless otherwise provided, and subject to
RCW 11.12.110, to the other person or persons receiving the residue, in
proportion to the interest of each in the remaining part of the residue.
(3)
The personal representative of the testator, a person who would be affected by
the lapse or distribution of a gift under this section, or a guardian ad litem
or other representative appointed to represent the interests of a person so
affected may petition the court for a determination under this section, and the
petition must be heard under the procedures of chapter 11.96 RCW.
Sec. 16. RCW 11.12.160 and 1965 c
145 s 11.12.160 are each amended to read as follows:
((All
beneficial devises, legacies, and gifts whatever, made or given in any will to
a subscribing witness thereto, shall be void unless there are two other
competent witnesses to the same; but a mere charge on the estate of the
testator for the payment of debts shall not prevent his creditors from being
competent witnesses to his will. If such witness, to whom any beneficial
devise, legacy or gift may have been made or given, would have been entitled to
any share in the testator's estate in case the will is not established, then so
much of the estate as would have descended or would have been distributed to
such witness shall be saved to him as will not exceed the value of the devise
or bequest made to him in the will; and he may recover the same from the
devisees or legatees named in the will in proportion to and out of the parts
devised and bequeathed to him.)) (1) An interested witness to a will is
one who would receive a gift under the will.
(2)
A will or any of its provisions is not invalid because it is signed by an
interested witness. Unless there are at least two other subscribing witnesses
to the will who are not interested witnesses, the fact that the will makes a
gift to a subscribing witness creates a rebuttable presumption that the witness
procured the gift by duress, menace, fraud, or undue influence.
(3)
If the presumption established under subsection (2) of this section applies and
the interested witness fails to rebut it, the interested witness shall take so
much of the gift as does not exceed the share of the estate that would be
distributed to the witness if the will were not established.
(4)
The presumption established under subsection (2) of this section has no effect
other than that stated in subsection (3) of this section.
Sec. 17. RCW 11.12.180 and 1965 c
145 s 11.12.180 are each amended to read as follows:
((If
any person, by last will, devise any real estate to any person for the term of
such person's life, such devise vests in the devisee an estate for life, and
unless the remainder is specially devised, it shall revert to the heirs at law
of the testator.)) The Rule in Shelley's Case is abolished as a rule of
law and as a rule of construction. If an applicable statute or a governing
instrument calls for a future distribution to or creates a future interest in a
designated individual's "heirs," "heirs at law," "next
of kin," "relatives," or "family," or language of
similar import, the property passes to those persons, including the state under
chapter 11.08 RCW, that would succeed to the designated individual's estate
under chapter 11.04 RCW. The property must pass to those persons as if the
designated individual had died when the distribution or transfer of the future
interest was to take effect in possession or enjoyment. For purposes of this
section and section 18 of this act, the designated individual's surviving
spouse is deemed to be an heir, regardless of whether the surviving spouse has
remarried.
NEW SECTION. Sec.
18. A new section is added to
chapter 11.12 RCW to read as follows:
The
Doctrine of Worthier Title is abolished as a rule of law and as a rule of
construction. However, the Doctrine of Worthier Title is preserved as a rule
of construction if:
(1) A
grantor has established in inter vivos trust of real property;
(2)
The grantor has expressly reserved a reversion to himself or herself; and
(3)
The words "heirs" or "heirs at law" are used by the grantor
to describe the quality of the grantor's title in the reversion as an estate in
fee simple in the event that the property reverts to the grantor.
In all
other cases, language in a governing instrument describing the beneficiaries of
a donative disposition as the transferor's "heirs," "heirs at
law," "next of kin," "distributees,"
"relatives," or "family," or language of similar import,
does not create or presumptively create a reversionary interest in the
transferor.
NEW SECTION. Sec.
19. (1) Unless expressly
exempted by statute, a beneficiary of a nonprobate asset that was subject to
satisfaction of the decedent's general liabilities immediately before the
decedent's death takes the asset subject to liabilities, claims, estate taxes,
and the fair share of expenses of administration reasonably incurred by the
personal representative in the transfer of or administration upon the asset.
The beneficiary of such an asset is liable to account to the personal
representative to the extent necessary to satisfy liabilities, claims, the
asset's fair share of expenses of administration, and the asset's share of
estate taxes under chapter 83.110 RCW. Before making demand that a beneficiary
of a nonprobate asset account to the personal representative, the personal
representative shall give notice to the beneficiary, in the manner provided in
chapter 11.96 RCW, that the beneficiary is liable to account under this
section.
(2)
The following rules govern in applying subsection (1) of this section:
(a) A
beneficiary of property passing at death under a community property agreement
takes the property subject to the decedent's liabilities, claims, estate taxes,
and administration expenses as described in subsection (1) of this section.
However, assets existing as community or separate property immediately before
the decedent's death under the community property agreement are subject to the
decedent's liabilities and claims to the same extent that they would have been
had they been assets of the probate estate.
(b) A
beneficiary of property held in joint tenancy form with right of survivorship,
including without limitation United States savings bonds or similar
obligations, takes the property subject to the decedent's liabilities, claims,
estate taxes, and administration expenses as described in subsection (1) of
this section to the extent of the decedent's beneficial ownership interest in
the property immediately before death.
(c) A
beneficiary of payable-on-death or trust bank accounts, bonds, securities, or
similar obligations, including without limitation United States bonds or
similar obligations, takes the property subject to the decedent's liabilities,
claims, estate taxes, and administration expenses as described in subsection
(1) of this section, to the extent of the decedent's beneficial ownership
interest in the property immediately before death.
(d) A
beneficiary of deeds or conveyances made by the decedent if possession has been
postponed until the death of the decedent takes the property subject to the
decedent's liabilities, claims, estate taxes, and administration expenses as
described in subsection (1) of this section, to the extent of the decedent's
beneficial ownership interest in the property immediately before death.
(e) A
trust for the decedent's use of which the decedent is the grantor is subject to
the decedent's liabilities, claims, estate taxes, and administration expenses
as described in subsection (1) of this section, to the same extent as the trust
was subject to claims of the decedent's creditors immediately before death
under RCW 19.36.020.
(f) A
trust not for the use of the grantor but of which the decedent is the grantor
and that becomes effective or irrevocable only upon the decedent's death is
subject to the decedent's claims, liabilities, estate taxes, and expenses of
administration as described in subsection (1) of this section.
(g)
Anything in this section to the contrary notwithstanding, nonprobate assets
that existed as community property immediately before the decedent's death are
subject to the decedent's liabilities and claims to the same extent that they
would have been had they been assets of the probate estate.
(h)
The liability of a beneficiary of life insurance is governed by chapter 48.18
RCW.
(i)
The liability of a beneficiary of pension or retirement employee benefits is
governed by chapter 6.15 RCW.
(j)
An inference may not be drawn from (a) through (i) of this subsection that a
beneficiary of nonprobate assets other than those assets specifically described
in (a) through (i) of this subsection does or does not take the assets subject
to claims, liabilities, estate taxes, and administration expenses as described
in subsection (1) of this section.
(3)
Nothing in this section derogates from the rights of a person interested in the
estate to recover tax under chapter 83.110 RCW or from the liability of any
beneficiary for estate tax under chapter 83.110 RCW.
Sec. 20. RCW 11.20.070 and 1965 c
145 s 11.20.070 are each amended to read as follows:
((Whenever
any will is lost or destroyed, the court may take proof of the execution and validity
of such will and establish it, notice to all persons interested having been
first given. Such proof shall be reduced to writing and signed by the
witnesses and filed with the clerk of the court.
No
will shall be allowed to be proved as a lost or destroyed will unless it is
proved to have been in existence at the time of the death of the testator, or
is shown to have been destroyed, canceled or mutilated in whole or in part as a
result of actual or constructive fraud or in the course of an attempt to change
the will in whole or in part, which attempt has failed, or as the result of a
mistake of fact, nor unless its provisions are clearly and distinctly proved by
at least two witnesses, and when any such will is so established, the
provisions thereof shall be distinctly stated in the judgment establishing it,
and such judgment shall be recorded as wills are required to be recorded.
Executors of such will or administrators with the will annexed)) (1) If
a will has been lost or destroyed under circumstances such that the loss or
destruction does not have the effect of revoking the will, the court may take
proof of the execution and validity of the will and establish it, notice to all
persons interested having been first given. The proof must be reduced to
writing and signed by any witnesses who have testified as to the execution and
validity, and must be filed with the clerk of the court.
(2)
The provisions of a lost or destroyed will must be proved by clear, cogent, and
convincing evidence, consisting at least in part of a witness to either its
contents or the authenticity of a copy of the will.
(3)
When a lost or destroyed will is established under subsections (1) and (2) of
this section, its provisions must be distinctly stated in the judgment establishing
it, and the judgment must be recorded as wills are required to be recorded. A
personal representative may be appointed by the court in the same manner as
is herein provided with reference to original wills presented to the court for
probate.
Sec. 21. RCW 11.24.010 and 1971 c
7 s 1 are each amended to read as follows:
If
any person interested in any will shall appear within four months immediately
following the probate or rejection thereof, and by petition to the court having
jurisdiction contest the validity of said will, or appear to have the will
proven which has been rejected, he or she shall file a petition
containing his or her objections and exceptions to said will, or to the
rejection thereof. ((Issue shall be made up, tried and determined in said
court respecting the competency of the deceased to make a last will and
testament, or respecting the execution by a deceased of such last will and
testament under restraint or undue influence or fraudulent representations, or
for any other cause affecting the validity of such will.)) Issues
respecting the competency of the deceased to make a last will and testament, or
respecting the execution by a deceased of the last will and testament under
restraint or undue influence or fraudulent representations, or for any other
cause affecting the validity of the will or a part of it, shall be tried and
determined by the court.
If no
person shall appear within the time ((aforesaid)) under this section,
the probate or rejection of such will shall be binding and final.
Sec. 22. RCW 11.24.040 and 1965 c
145 s 11.24.040 are each amended to read as follows:
If,
upon the trial of said issue, it shall be decided that the will or a part of
it is for any reason invalid, or that it is not sufficiently proved to have
been the last will of the testator, the will or part and probate thereof
shall be annulled and revoked((, and thereupon and thereafter the powers of
the executor or administrator with the will annexed shall cease, but such
executor or administrator)) and to that extent the powers of the
personal representative shall cease, but the personal representative shall
not be liable for any act done in good faith previous to such annulling or
revoking.
Sec. 23. RCW 11.28.120 and 1985 c
133 s 1 are each amended to read as follows:
Administration
of ((the)) an estate ((of)) if the ((person
dying)) decedent died intestate or if the personal representative
or representatives named in the will declined or were unable to serve shall
be granted to some one or more of the persons hereinafter mentioned, and they
shall be respectively entitled in the following order:
(1)
The surviving ((husband or wife)) spouse, or such person as he or
she may request to have appointed.
(2)
The next of kin in the following order: (a) Child or children; (b) father or
mother; (c) brothers or sisters; (d) grandchildren; (e) nephews or nieces.
(3) The
trustee named by the decedent in an inter vivos trust instrument, testamentary
trustee named in the will, guardian of the person or estate of the decedent, or
attorney in fact appointed by the decedent, if any such a fiduciary controlled
or potentially controlled substantially all of the decedent's probate and
nonprobate assets.
(4)
One or more of the beneficiaries or transferees of the decedent's probate or
nonprobate assets.
(5)
The director of revenue, or the director's designee, for those estates having
property subject to the provisions of chapter 11.08 RCW; however, the director
may waive this right.
(((4)))
(6) One or more of the principal creditors.
(((5)))
(7) If the persons so entitled shall fail for more than forty days after
the death of the ((intestate)) decedent to present a petition for
letters of administration, or if it appears to the satisfaction of the
court that there ((are)) is no ((relatives or)) next of
kin, as above specified eligible to appointment, or they waive their right, and
there are no principal creditor or creditors, or such creditor or creditors
waive their right, then the court may appoint any suitable person to administer
such estate.
Sec. 24. RCW 11.28.237 and 1977
ex.s. c 234 s 6 are each amended to read as follows:
Within
twenty days after appointment, the personal representative of the estate of a
decedent shall cause written notice of his or her appointment and the
pendency of said probate proceedings, to be served personally or by mail to
each heir, legatee and devisee of the estate and each beneficiary or
transferee of a nonprobate asset of the decedent whose names and addresses
are known to him or her, and proof of such mailing or service shall be
made by affidavit and filed in the cause.
Sec. 25. RCW 11.40.010 and 1991 c
5 s 1 are each amended to read as follows:
Every
personal representative shall, after appointment and qualification, give a
notice to the creditors of the deceased, stating such appointment and
qualification as personal representative and requiring all persons having
claims against the deceased to serve the same on the personal representative or
the estate's attorney of record, and file an executed copy thereof with the
clerk of the court, within four months after the date of the first publication
of such notice described in this section or within four months after the date
of the filing of the copy of such notice with the clerk of the court, whichever
is the later, or within the time otherwise provided in RCW 11.40.013. The
four-month time period after the later of the date of the first publication of
the notice to creditors or the date of the filing of such notice with the clerk
of the court is referred to in this chapter as the "four-month time
limitation." Such notice shall be given as follows:
(1)
The personal representative shall give actual notice, as provided in RCW
11.40.013, to such creditors who become known to the personal representative
within such four-month time limitation;
(2)
The personal representative shall cause such notice to be published once in
each week for three successive weeks in the county in which the estate is being
administered; and
(3)
The personal representative shall file a copy of such notice with the clerk of
the court.
Except
as otherwise provided in RCW 11.40.011 or 11.40.013, any claim not filed within
the four-month time limitation shall be forever barred, if not already barred
by any otherwise applicable statute of limitations. This bar is effective
as to claims against both the decedent's probate assets and nonprobate assets
as described in section 19 of this act. Proof by affidavit of the giving
and publication of such notice shall be filed with the court by the personal
representative.
Acts
of a notice agent in complying with chapter ..., Laws of 1994 (this act) may be
adopted and ratified by the personal representative as if done by the personal
representative in complying with this chapter, except that if at the time of
the appointment and qualification of the personal representative a notice agent
had commenced nonprobate notice to creditors under chapter 11.-- RCW (sections
31 through 48 of this act), the personal representative shall give published
notice as provided in section 48 of this act.
Sec. 26. RCW 11.40.013 and 1989 c
333 s 4 are each amended to read as follows:
The
actual notice described in RCW 11.40.010(1), as to creditors becoming known to
the personal representative within the four-month time limitation, shall be
given the creditors by personal service or regular first class mail, addressed
to the creditor's last known address, postage prepaid. The actual notice shall
be given before the later of the expiration of the four-month time limitation
or thirty days after any creditor became known to the personal representative
within the four-month time limitation. Any known creditor is barred unless the
creditor has filed a claim, as otherwise provided in this chapter, within the
four-month time limitation or within thirty days following the date of actual
notice to that creditor, whichever is later. If notice is given by mail, the
date of mailing shall be the date of notice. This bar is effective as to
claims against both the decedent's probate assets and nonprobate assets.
Sec. 27. RCW 11.40.015 and 1989 c
333 s 6 are each amended to read as follows:
Notice under RCW 11.40.010 shall be in substantially the
following form:
)
CAPTION ) No.
OF CASE )
) NOTICE TO CREDITORS
)
................... )
The
personal representative named below has been appointed and has qualified as
personal representative of this estate. Persons having claims against the ((deceased))
decedent must, prior to the time such claims would be barred by any
otherwise applicable statute of limitations, serve their claims on the personal
representative or the attorneys of record at the address stated below and file
an executed copy of the claim with the Clerk of this Court within four months
after the date of first publication of this notice or within four months after
the date of the filing of the copy of this Notice with the Clerk of the Court,
whichever is later or, except under those provisions included in RCW 11.40.011
or 11.40.013, the claim will be forever barred. This bar is effective as to
claims against both the probate assets and nonprobate assets of the decedent.
DATE
OF FILING COPY OF NOTICE TO CREDITORS with Clerk of Court:
. . . . . . . . . . .
DATE
OF FIRST PUBLICATION: ............................
...................................................... ,
Personal Representative
Address
Attorney for Estate:
Address:
Telephone:
Sec. 28. RCW 11.40.040 and 1974
ex.s. c 117 s 36 are each amended to read as follows:
Every
claim which has been allowed by the personal representative shall be ranked
among the acknowledged debts of the estate to be paid expeditiously in
the course of administration.
Sec. 29. RCW 11.40.080 and 1988 c
64 s 22 are each amended to read as follows:
No
holder of any claim against a decedent shall maintain an action thereon, unless
the claim shall have been first presented as ((herein)) provided in
this chapter. Nothing in this chapter affects ((the notice under))
RCW 82.32.240.
Sec. 30. RCW 11.48.010 and 1965 c
145 s 11.48.010 are each amended to read as follows:
It
shall be the duty of every personal representative to settle the estate,
including the administration of any nonprobate assets within control of the
personal representative under section 19 of this act, in his or her
hands as rapidly and as quickly as possible, without sacrifice to the probate
or nonprobate estate. ((He)) The personal representative
shall collect all debts due the deceased and pay all debts as hereinafter
provided. ((He)) The personal representative shall be authorized
in his or her own name to maintain and prosecute such actions as pertain
to the management and settlement of the estate, and may institute suit to
collect any debts due the estate or to recover any property, real or personal,
or for trespass of any kind or character.
NEW SECTION. Sec.
31. (1) Subject to the
conditions stated in this section and if no personal representative has been
appointed and qualified in the decedent's estate in Washington, the following
members of a group, defined as the "qualified group", are qualified
to give "nonprobate notice to creditors" of the decedent:
(a)
Decedent's surviving spouse;
(b)
The person appointed in an agreement made under chapter 11.96 RCW to give
nonprobate notice to creditors of the decedent;
(c)
The trustee, except a testamentary trustee under the will of the decedent not
probated in another state, having authority over any of the property of the
decedent; and
(d)
A person who has received any property of the decedent by reason of the
decedent's death.
(2)
The "included property" means the property of the decedent that was
subject to satisfaction of the decedent's general liabilities immediately
before the decedent's death and that either:
(a)
Constitutes a nonprobate asset; or
(b)
Has been received, or is entitled to be received, either under chapter 11.62
RCW or by the personal representative of the decedent's probate estate
administered outside the state of Washington, or both.
(3)
The qualified person shall give the nonprobate notice to creditors. The
"qualified person" must be:
(a)
The person in the qualified group who has received, or is entitled to receive,
by reason of the decedent's death, all, or substantially all, of the included
property; or
(b)
If there is no person in (a) of this subsection, then the person who has been
appointed by those persons, including any successors of those persons, in the
qualified group who have received, or are entitled to receive, by reason of the
decedent's death, all, or substantially all, of the included property.
(4)
The requirement in subsection (3) of this section of the receipt of all, or
substantially all, of the included property is satisfied if:
(a)
The person described in subsection (3)(a) of this section at the time of the
filing of the declaration and oath referred to in subsection (5) of this
section in reasonable good faith believed that the person had received, or was
entitled to receive, by reason of the decedent's death, all, or substantially
all, of the included property; or
(b)
The persons described in subsection (3)(b) of this section at the time of their
entry into the agreement under chapter 11.96 RCW in which they appoint the
person to give the nonprobate notice to creditors in reasonable good faith
believed that they had received, or were entitled to receive, by reason of the
decedent's death, all, or substantially all, of the included property.
(5)
The "notice agent" means the qualified person who:
(a)
Files a declaration and oath with the clerk of the superior court in a county
in which probate may be commenced regarding the decedent as provided in RCW
11.96.050(2);
(b)
Pays a filing fee to the clerk equal in amount to the filing fee charged by the
clerk for the probate of estates; and
(c)
Receives from the clerk a cause number.
The
county in which the notice agent files the declaration is the "notice
county." The declaration and oath must be made in affidavit form or under
penalty of perjury under the laws of the state in the form provided in RCW
9A.72.085 and must state that the person making the declaration believes in
reasonable good faith that the person is qualified under this chapter to act as
the notice agent and that the person faithfully will execute the duties of the
notice agent as provided in this chapter.
(6)
The following persons may not act as notice agent:
(a)
Corporations, trust companies, and national banks, except:
(i)
Professional service corporations that are regularly organized under the laws
of this state whose shareholder or shareholders are exclusively attorneys; and
(ii)
Other corporations, trust companies, and national banks that are authorized to
do trust business in this state;
(b)
Minors;
(c)
Persons of unsound mind; or
(d)
Persons who have been convicted of a felony or of a misdemeanor involving moral
turpitude.
(7)
A person who has given notice under this chapter and who thereafter becomes of
unsound mind or is convicted of a crime or misdemeanor involving moral
turpitude is no longer qualified to act as notice agent under this chapter.
The disqualification does not bar another person, otherwise qualified, from
acting as notice agent under this chapter.
(8)
A nonresident may act as notice agent if the nonresident appoints an agent who
is a resident of the notice county or who is attorney of record for the notice
agent upon whom service of all papers may be made. The appointment must be
made in writing and filed by the clerk of the notice county with the other
papers relating to the notice given under this chapter.
(9)
The powers and authority of a notice agent cease, and the office of notice
agent becomes vacant, upon the appointment and qualification of a personal
representative for the estate of the decedent. Except as provided in section
48 of this act, the cessation of the powers and authority does not affect a
published notice under this chapter if the publication commenced before the
cessation and does not affect actual notice to creditors given by the notice
agent before the cessation.
NEW SECTION. Sec.
32. (1) The notice agent may
give nonprobate notice to the creditors of the decedent if:
(a)
As of the date of the filing of a copy of the notice with the clerk of the
superior court for the notice county, the notice agent has no knowledge of the
appointment and qualification of a personal representative in the decedent's
estate in the state of Washington or of another person becoming a notice agent;
and
(b)
According to the records of the clerk of the superior court for the notice
county as of 8:00 a.m. on the date of the filing, no personal representative of
the decedent's estate had been appointed and qualified and no cause number
regarding the decedent had been issued to any other notice agent by the clerk
under section 31 of this act.
(2)
The notice must state that all persons having claims against the decedent
shall: (a) Serve the same on the notice agent if the notice agent is a
resident of the state of Washington upon whom service of all papers may be
made, or on the nonprobate resident agent for the notice agent, if any, or on
the attorneys of record of the notice agent at their respective address in the
state of Washington; and (b) file an executed copy of the notice with the clerk
of the superior court for the notice county, within: (i) (A) Four months after
the date of the first publication of the notice described in this section; or
(B) four months after the date of the filing of the copy of the notice with the
clerk of the superior court for the notice county, whichever is later; or (ii)
the time otherwise provided in section 35 of this act. The four-month time
period after the later of the date of the first publication of the notice to
creditors or the date of the filing of the notice with the clerk of the court
is referred to in this chapter as the "four-month time limitation."
(3)
The notice agent shall declare in the notice in affidavit form or under the
penalty of perjury under the laws of the state of Washington as provided in RCW
9A.72.085 that: (a) The notice agent is entitled to give the nonprobate notice
under subsection (1) of this section; and (b) the notice is being given by the
notice agent as permitted by this section.
(4)
The notice agent shall sign the notice and file it with the clerk of the
superior court for the notice county. The notice must be given as follows:
(a)
The notice agent shall give actual notice as to creditors of the decedent who
become known to the notice agent within the four-month time limitation as
required in section 35 of this act;
(b)
The notice agent shall cause the notice to be published once in each week for
three successive weeks in the notice county; and
(c)
The notice agent shall file a copy of the notice with the clerk of the superior
court for the notice county.
(5)
A claim not filed within the four-month time limitation is forever barred, if
not already barred by an otherwise applicable statute of limitations, except as
provided in section 33 or 35 of this act. The bar is effective to bar claims
against both the probate estate of the decedent and nonprobate assets that were
subject to satisfaction of the decedent's general liabilities immediately
before the decedent's death. If a notice to the creditors of a decedent is
published by more than one notice agent and the notice agents are not acting
jointly, the four-month time limitation means the four-month time limitation
that applies to the notice agent who first publishes the notice. Proof by
affidavit or perjury declaration made under RCW 9A.72.085 of the giving and
publication of the notice must be filed with the clerk of the superior court
for the notice county by the notice agent.
NEW SECTION. Sec.
33. The time limitations
under this chapter for serving and filing claims do not accrue to the benefit
of a liability or casualty insurer as to claims against either the decedent or
the marital community of which the decedent was a member, or both, and:
(1)
The claims, subject to applicable statutes of limitation, may at any time be:
(a) Served on the duly acting notice agent, the duly acting resident agent for
the notice agent, or on the attorney for either of them; and (b) filed with the
clerk of the superior court for the notice county; or
(2)
If there is no duly acting notice agent or resident agent for the notice agent,
the claimant as a creditor shall proceed as provided in chapter 11.40 RCW.
However, if no personal representative ever has been appointed for the
decedent, a personal representative must be appointed as provided in chapter
11.28 RCW and the estate opened, in which case the claimant then shall proceed
as provided in chapter 11.40 RCW.
A
claim may be served and filed as provided in this section, notwithstanding that
there is no duly acting notice agent and that no personal representative
previously has been appointed. However, the amount of recovery under the claim
may not exceed the amount of applicable insurance coverages and proceeds, and
the claim so served and filed may not constitute a cloud or lien upon the title
to the assets of the decedent or delay or prevent the transfer or distribution
of assets of the decedent. This section does not serve to extend the
applicable statute of limitations regardless of whether a declaration and oath has
been filed by a notice agent as provided in section 31 of this act.
NEW SECTION. Sec.
34. The notice agent shall
exercise reasonable diligence to discover, within the four-month time
limitation, reasonably ascertainable creditors of the decedent. The notice
agent is deemed to have exercised reasonable diligence to ascertain the
creditors upon:
(1)
Conducting, within the four-month time limitation, a reasonable review of the
decedent's correspondence including correspondence received after the date of
death and financial records including checkbooks, bank statements, income tax
returns, and similar materials, that are in the possession of, or reasonably
available to, the notice agent; and
(2)
Having made, with regard to claimants, inquiry of the nonprobate takers of the
decedent's property and of the presumptive heirs, devisees, and legatees of the
decedent, all of whose names and addresses are known, or in the exercise of
reasonable diligence should have been known, to the notice agent.
If
the notice agent conducts the review and makes an inquiry, the notice agent is
presumed to have exercised reasonable diligence to ascertain creditors of the
decedent, and creditors not ascertained in the review or in an inquiry are presumed
not reasonably ascertainable. These presumptions may be rebutted only by
clear, cogent, and convincing evidence. The notice agent may evidence the
review and inquiry by filing an affidavit or declaration under penalty of
perjury form as provided in RCW 9A.72.085 to the effect in the nonprobate
proceeding in the notice county. The notice agent also may petition the
superior court of the notice county for an order declaring that the notice
agent has made a review and inquiry and that only creditors known to the notice
agent after the review and inquiry are reasonably ascertainable. The petition
and hearing must be under the procedures provided in chapter 11.96 RCW, and the
notice specified under RCW 11.96.100 must also be given by publication.
NEW SECTION. Sec.
35. The actual notice
described in section 32(4)(a) of this act, as to a creditor becoming known to
the notice agent within the four-month time limitation, must be given the
creditor by personal service or regular first class mail, addressed to the
creditor's last known address, postage prepaid. The actual notice must be
given before the later of the expiration of the four-month time limitation or
thirty days after a creditor became known to the notice agent within the
four-month time limitation. A known creditor is barred unless the creditor has
filed a claim, as provided in this chapter, within the four-month time
limitation or within thirty days following the date of actual notice to that
creditor, whichever is later. If notice is given by mail, the date of mailing
is the date of notice. This bar is effective as to claims against the included
property as defined in section 31 of this act.
NEW SECTION. Sec.
36. (1) Whether or not
notice under section 32 of this act has been given or should have been given,
if no personal representative has been appointed and qualified, a person having
a claim against the decedent who has not filed the claim within eighteen months
from the date of the decedent's death is forever barred from making a claim
against the decedent, or commencing an action against the decedent, if the
claim or action is not already barred by any otherwise applicable statute of
limitations. However, this eighteen-month limitation does not apply to:
(a)
Claims described in section 33 of this act;
(b)
A claim if, during the eighteen-month period following the date of death,
partial performance has been made on the obligation underlying the claim, and
the notice agent has not given the actual notice described in section 32(4)(a)
of this act; or
(c)
Claims if, within twelve months after the date of death:
(i)
No notice agent has given the published notice described in section 32(4)(b) of
this act; and
(ii)
No personal representative has given the published notice described in RCW
11.40.010(2).
Any
otherwise applicable statute of limitations applies without regard to the
tolling provisions of RCW 4.16.190.
(2)
Claims referred to in this section must be filed if there is no duly appointed,
qualified, and acting personal representative and there is a duly declared and
acting notice agent or resident agent for the notice agent. The claims,
subject to applicable statutes of limitation, may at any time be served on the
duly declared and acting notice agent or resident agent for the notice agent,
or on the attorney for either of them.
(3)
A claim to be filed under this chapter if there is no duly appointed,
qualified, and acting personal representative but there is a duly declared and
acting notice agent or resident agent for the notice agent and which claim is
not otherwise barred under this chapter must be made in the form and manner
provided under section 32 of this act, as if the notice under that section had
been given.
NEW SECTION. Sec.
37. Notice under section 32
of this act must be in substantially the following form:
In the
Matter of )
)
No.
)
)
NONPROBATE NOTICE TO CREDITORS
Deceased. )
______________________________)
_________________________________________,
the undersigned Notice Agent, has elected to give notice to creditors of the
decedent above named under section 32 of this act. As of the date of the
filing of a copy of this notice with the Clerk of this Court, the Notice Agent
has no knowledge of the appointment and qualification of a personal
representative in the decedent's estate in the state of Washington or of any
other person becoming a Notice Agent. According to the records of the Clerk of
this Court as of 8:00 a.m. on the date of the filing of this notice with the
Clerk, no personal representative of the decedent's estate had been appointed
and qualified and no cause number regarding the decedent had been issued to any
other Notice Agent by the Clerk of this Court under section 31 of this act.
Persons
having claims against the decedent named above must, before the time the claims
would be barred by any otherwise applicable statute of limitations, serve their
claims on: The notice agent if the Notice Agent is a resident of the state of
Washington upon whom service of all papers may be made; the Nonprobate Resident
Agent for the Notice Agent, if any; or the attorneys of record for the Notice
Agent at the respective address in the state of Washington listed below, and
file an executed copy of the claim with the Clerk of this Court within four
months after the date of first publication of this notice, or within four
months after the date of the filing of the copy of this notice with the Clerk
of the Court, whichever is later, or, except under those provisions included in
section 33 or 35 of this act, the claim will be forever barred. This bar is
effective as to all assets of the decedent that were subject to satisfaction of
the decedent's general liabilities immediately before the decedent's death
regardless of whether those assets are or would be assets of the decedent's
probate estate or nonprobate assets of the decedent.
Date of filing of this notice with the
Clerk of the Court: ____________________
Date
of first publication of this notice: ____________________
The
Notice Agent declares under penalty of perjury under the laws of the State of
Washington on __________________, 19___ at [City] ,
[State] that the foregoing is true and
correct.
____________________________
______________________________________
Notice
Agent [signature] Nonprobate Resident Agent [if appointed]
[address
in Washington, if any] [address in Washington]
_________________________
Attorney
for Notice Agent
[address
in Washington]
[telephone]
NEW SECTION. Sec.
38. RCW 11.40.020 applies to
claims subject to this chapter.
NEW SECTION. Sec.
39. (1) Property of the
decedent that was subject to the satisfaction of the decedent's general
liabilities immediately before the decedent's death is liable for claims. The
property includes, but is not limited to, property of the decedent that is includable
in the decedent's probate estate, whether or not there is a probate
administration of the decedent's estate.
(2)
A claim approved by the notice agent, and a judgment on a claim first
prosecuted against a notice agent, may be paid only out of assets received as a
result of the death of the decedent by the notice agent or by those appointing
the notice agent under chapter 11.96 RCW, except as may be provided by
agreement under RCW 11.96.170 or by court order under RCW 11.96.070.
NEW SECTION. Sec.
40. (1) The notice agent
shall approve or reject claims no later than by the end of a period that is two
months after the end of the four-month time limitation defined as the
"review period."
(2)
The notice agent may approve a claim, in whole or in part.
(3)
If the notice agent rejects a claim, in whole or in part, the notice agent
shall notify the claimant of the rejection and file in the office of the clerk
of the court in the notice county an affidavit or declaration under penalty of
perjury under RCW 9A.72.085 showing the notification and the date of the
notification. The notification must be by personal service or certified mail
addressed to the claimant at the claimant's address as stated in the claim. If
a person other than the claimant signed the claim for or on behalf of the
claimant, and the person's business address as stated in the claim is different
from that of the claimant, notification of the rejection also must be made by
personal service or certified mail upon that person. The date of the postmark
is the date of the notification. The notification of the rejection must advise
the claimant, and the person making claim on his, her, or its behalf, if any,
that the claimant must bring suit in the proper court in the notice county
against the notice agent: (a) Within thirty days after notification of
rejection if the notification is made during or after the review period; or (b)
before expiration of thirty days after the end of the four-month time
limitation, if the notification is made during the four-month time limitation,
and that otherwise the claim is forever barred.
(4)
A claimant whose claim either has been rejected by the notice agent or has not
been acted upon within twenty days of written demand for the action having been
given to the notice agent by the claimant during or after the review period
must commence an action against the notice agent in the proper court in the
notice county to enforce the claim of the claimant within the earlier of:
(a)
If the notice of the rejection of the claim has been sent as provided in
subsection (3) of this section: The time for filing an action on a rejected
claim is as provided in subsection (3) of this section; or
(b)
If written demand for approval or rejection is made on the notice agent before
the claim is rejected: Within 30 days following the end of the twenty-day
written demand period where the demand period ends during or after the review
period;
otherwise
the claim is forever barred.
(5)
The notice agent may, either before or after rejection of a claim, compromise
the claim, whether due or not, absolute or contingent, liquidated or
unliquidated.
(6)
A personal representative of the decedent's estate may revoke either or both
of: (a) The rejection of a claim that has been rejected by the notice agent;
or (b) the approval of a claim that has been either approved or compromised by
the notice agent, or both.
(7)
If a notice agent pays a claim that subsequently is revoked by a personal representative
of the decedent, the notice agent may file a claim in the decedent's estate for
the notice agent's payment, and the claim may be allowed or rejected as other
claims, at the election of the personal representative.
(8)
If the notice agent has not received substantially all assets of the decedent
that are liable for claims, then although an action may be commenced on a
rejected claim by a creditor against the notice agent, the notice agent,
notwithstanding any provision in this chapter, may only make an appearance in
the litigation. The Notice Agent may not answer the action, but must, instead,
cause a petition to be filed for the appointment of a personal representative
of the decedent within thirty days of the service of the creditor's summons and
complaint on the notice agent. A judgment may not be entered in an action
brought by a creditor against the notice agent earlier than twenty days after
the duly appointed, qualified, and acting personal representative of the
decedent has been substituted in that action for the notice agent.
NEW SECTION. Sec.
41. If a claim has been
filed and presented to a notice agent, and a part of the claim is allowed, the
amount of the allowance must be stated in the indorsement. If the creditor
refuses to accept the amount so allowed in satisfaction of the claim, the
creditor may not recover costs in an action the creditor may bring against the
notice agent and against any substituted personal representative unless the
creditor recovers a greater amount than that offered to be allowed, exclusive
of interest and costs.
NEW SECTION. Sec.
42. A debt of a decedent for
whose estate no personal representative has been appointed must be paid in the
following order by the notice agent from the assets of the decedent that are
subject to the payment of claims as provided in section 39 of this act:
(1)
Costs of administering the assets subject to the payment of claims, including a
reasonable fee to the notice agent, the resident agent for the notice agent, if
any, reasonable attorneys' fees for the attorney for each of them, filing fees,
publication costs, mailing costs, and similar costs and fees.
(2)
Funeral expenses in a reasonable amount.
(3)
Expenses of the last sickness in a reasonable amount.
(4)
Wages due for labor performed within sixty days immediately preceding the death
of the decedent.
(5)
Debts having preference by the laws of the United States.
(6)
Taxes or any debts or dues owing to the state.
(7)
Judgments rendered against the decedent in the decedent's lifetime that are
liens upon real estate on which executions might have been issued at the time
of the death of the decedent and debts secured by mortgages in the order of
their priority. However, the real estate is subject to the payment of claims
as provided in section 40 of this act.
(8)
All other demands against the assets subject to the payment of claims as
provided in section 40 of this act.
A
claim of the notice agent or other person who has received property by reason
of the decedent's death may not be paid by the notice agent unless all other
claims that have been filed under this chapter, and all debts having priority
to the claim, are paid in full or otherwise settled by agreement, regardless of
whether the other claims are allowed or rejected, or partly allowed or partly
rejected. In the event of the probate of the decedent's estate, the personal
representative's payment from estate assets of the claim of the notice agent or
other person who has received property by reason of the decedent's death is not
affected by the priority payment provisions of this section.
NEW SECTION. Sec.
43. The notice agent may not
allow a claim that is barred by the statute of limitations.
NEW SECTION. Sec.
44. A holder of a claim
against a decedent may not maintain an action on the claim against a notice
agent, unless the claim has been first presented as provided in this chapter.
This chapter does not affect RCW 82.32.240.
NEW SECTION. Sec.
45. The time during which
there is a vacancy in the office of notice agent is not included in a
limitation prescribed in this chapter.
NEW SECTION. Sec.
46. If a judgment has been
rendered against a decedent in the decedent's lifetime, an execution may not
issue on the judgment after the death of the decedent, but the judgment must be
presented in the form of a claim to the notice agent, if any, as any other
claim. The claim need not be supported by the affidavit of the claimant. If
the claim is justly due and unsatisfied, it must be paid in due course in
accordance with this chapter for the payment of claims. However, if the
judgment is a lien on property classified within the definition of the included
property in section 31 of this act, the property may be sold for the
satisfaction of the judgment, and the officer making the sale shall account to
the notice agent for any surplus.
NEW SECTION. Sec.
47. The personal claim of a
Notice Agent, as a creditor of the decedent, must be authenticated by
affidavit, and must be filed and presented for allowance to the superior court
in the notice county. The allowance of the claim by the court is sufficient
evidence of the correctness of the claim.
NEW SECTION. Sec.
48. In case the office of
notice agent becomes vacant for any reason, including resignation, death,
removal, or replacement, after notice by publication has been commenced as
provided in section 32 of this act, the personal representative of the decedent
or the successor notice agent shall publish notice of the vacancy and
succession for two successive weeks in a legal newspaper published in the
notice county. The time between the commencement of the vacancy and the
publication by the successor notice agent or personal representative must be
added to the time within which claims must be filed: (1) As fixed by the first
published nonprobate notice to creditors; and (2) as extended in the case of
actual notice under section 35 of this act, unless the time expired before the
vacancy. Notice is not required if the period for filing claims has expired
during the time that the former notice agent was qualified.
Sec. 49. RCW 11.56.050 and 1965 c
145 s 11.56.050 are each amended to read as follows:
If
the court should determine that it is necessary to sell any or all of the real
estate for the purposes mentioned in this title, then it may make and cause to
be entered an order directing the personal representative to sell so much of
the real estate as the court may determine necessary for the purposes
aforesaid. Such order shall give a particular description of the property to
be sold and the terms of such sale and shall provide whether such property
shall be sold at public or private sale, or by negotiation. ((The court
shall order sold that part of the real estate which is generally devised,
rather than any part which may have been specifically devised, but the court
may, if it appears necessary, sell any or all of the real estate so devised.))
After the giving of such order it shall be the duty of the personal
representative to sell such real estate in accordance with the order of the
court and as in this title provided with reference to the public or private
sales of real estate.
Sec. 50. RCW 11.68.010 and 1977
ex.s. c 234 s 18 are each amended to read as follows:
Subject
to the provisions of this chapter, if the estate of a decedent, who died either
testate or intestate, is solvent taking into account both probate and
nonprobate assets of the decedent, and if the personal representative is
other than a creditor of the decedent not designated as personal representative
in the decedent's will, such estate shall be managed and settled without the
intervention of the court; the fact of solvency shall be established by the
entry of an order of solvency. An order of solvency may be entered at the time
of the appointment of the personal representative or at any time thereafter
where it appears to the court by the petition of the personal representative,
or the inventory filed, and/or other proof submitted, that the estate of the
decedent is solvent, and that notice of the application for an order of
solvency has been given to those persons entitled thereto when required by RCW
11.68.040 as now or hereafter amended.
Sec. 51. RCW 11.96.009 and 1985 c
31 s 2 are each amended to read as follows:
(1)
The superior court shall have original subject-matter jurisdiction over
((probates in the following instances)) the probate of wills and the
administration of estates of incapacitated, missing, and deceased individuals
in all instances, including without limitation:
(a)
When a resident of the state dies; or
(b)
When a nonresident of the state dies in the state; or
(c)
When a nonresident of the state dies outside the state.
(2)
The superior court shall have original subject-matter jurisdiction over
trusts and ((trust)) matters relating to trusts.
(3)
The superior courts in the exercise of their jurisdiction of matters of ((probate
and)) trusts and estates shall have the power to probate or
refuse to probate wills, appoint personal representatives ((of deceased,
incompetent, or disabled persons and)), administer and settle ((all
such estates, and)) the affairs and the estates of incapacitated,
missing, or deceased individuals including but not limited to decedents'
estates only containing nonprobate assets, administer and settle matters that
relate to nonprobate assets and arise under chapter 11.-- (section 19 of this
act) or 11.-- RCW (sections 31 through 48 of this act), administer and
settle all trusts and trust matters, award processes and cause to come before
them all persons whom they may deem it necessary to examine, and order and
cause to be issued all such writs as may be proper or necessary, and do all
things proper or incident to the exercise of such jurisdiction.
Sec. 52. RCW 11.96.020 and 1985 c
31 s 3 are each amended to read as follows:
It
is the intention of ((this title)) the legislature that the
courts ((mentioned)) shall have full and ample power and authority under
this title to:
(1)
Administer and settle ((all estates of decedents and incompetent and
disabled persons in this title mentioned and to)) the affairs and the
estates of all incapacitated, missing, and deceased persons in accordance with
this title;
(2)
Administer and settle all trusts and trust matters; and
(3)
Administer and settle matters arising with respect to nonprobate assets under
chapters 11.-- (section 19 of this act) and 11.-- RCW (sections 31 through 48
of this act).
If
the provisions of this title with reference to the administration and
settlement of such ((estates or trusts)) matters should in any
cases and under any circumstances be inapplicable ((or)),
insufficient, or doubtful, the court shall nevertheless have full power
and authority to proceed with such administration and settlement in any manner
and way which to the court seems right and proper, all to the end that such ((estates
or trusts may be by the court administered upon and settled)) matters
may be administered and settled by the court.
Sec. 53. RCW 11.96.050 and 1985 c
31 s 6 are each amended to read as follows:
For
purposes of venue in proceedings involving: The probate of wills;
the administration and disposition of estates of incapacitated, missing, or
deceased individuals, including but not limited to estates only containing
nonprobate assets; or trusts and trust matters, the following shall apply:
(1)
Proceedings under Title 11 RCW pertaining to trusts shall be commenced ((either)):
(a)
In the superior court of the county in which the situs of the trust is located
as provided in RCW 11.96.040; or
(b)
((In the superior court of the county in which a trustee resides or has its
principal place of business; or
(c)))
With respect to testamentary trusts, in the superior court of the county where
letters testamentary were granted to a personal representative((, and in the
absence of)) or, where no such letters have been granted to a
personal representative, then in any county where letters testamentary
could have been granted in accordance with subsection (2) of this section.
(2)
Wills shall be proven, letters testamentary or of administration granted, and
other proceedings pertaining to the probate of wills, the administration and
disposition of estates including but not limited to estates containing only
nonprobate assets under Title 11 RCW ((pertaining to probate)) shall
be commenced((, either)):
(a)
In the county in which the decedent was a resident at the time of death;
(b)
In the county in which the decedent died, or in which any part of the estate
may be, if the decedent was not a resident of this state; ((or))
(c)
In the county in which any part of the estate may be, if the decedent ((having))
died out-of-state((,)) and was not ((having been)) a
resident ((in)) of this state at the time of death; or
(d)
In the county in which any nonprobate asset may be, if the decedent died
out-of-state, was not a resident of this state at the time of death, and left
no assets subject to probate administration in this state.
(3)
No action undertaken is defective or invalid because of improper venue if the
court has jurisdiction of the matter.
Sec. 54. RCW 11.96.060 and 1985 c
31 s 7 are each amended to read as follows:
(1)
Any action against the trustee of an express trust, excluding those trusts
excluded from the definition of express trusts under RCW 11.98.009, but
including all express trusts, whenever executed, for any breach of fiduciary
duty, must be brought within three years from the earlier of (a) the time the
alleged breach was discovered or reasonably should have been discovered, (b)
the discharge of a trustee from the trust as provided in RCW ((11.98.040))
11.98.041, or (c) the time of termination of the trust or the trustee's
repudiation of the trust.
(2)
Any action by an heir, legatee, or other interested party, to whom proper
notice was given if required, against a personal representative for alleged
breach of fiduciary duty must be brought prior to discharge of the personal
representative.
(3)
The tolling provisions of RCW 4.16.190 apply to this chapter except that the
running of any statute of limitations stated in subsection (1) or (2) of this
section, or any other applicable statute of limitations for any matter that is
the subject of dispute under chapter 11.96 RCW, is not tolled if the
unascertained or unborn heir, beneficiary, or class of persons, or minor((,
incompetent, or disabled)) or incapacitated person, or person
identified in RCW 11.96.170(2) or 11.96.180 whose identity or address is
unknown, had a guardian ad litem, limited or general guardian of the estate, or
a special representative to represent the person during the probate or dispute
resolution proceeding.
(((4)
Notwithstanding subsections (2) and (3) of this section, any cause of action
against a trustee of an express trust, as provided for in subsection (1) of
this section is not barred by the statute of limitations if it is brought
within three years from January 1, 1985. In addition, any action as specified
in subsection (2) of this section against the personal representative is not
barred by this statute of limitations if it is brought within one year of
January 1, 1985.))
Sec. 55. RCW 11.96.070 and 1990 c
179 s 1 are each amended to read as follows:
((A
trustor, grantor, personal representative, trustee, or other fiduciary,
creditor, devisee, legatee, heir, or trust beneficiary interested in the
administration of a trust, or the attorney general in the case of a charitable
trust under RCW 11.110.120, or of the estate of a decedent, incompetent, or
disabled person,)) (1) A person with an interest in or right respecting
the administration, settlement, or disposition of an interest in a trust or in
the estate of an incapacitated, missing, or deceased person may have a
judicial proceeding for the declaration of rights or legal relations ((in
respect to the trust or estate)) under this title including but not
limited to the following:
(((1)
To ascertain)) (a) The ascertaining of any class of creditors,
devisees, legatees, heirs, next of kin, or others;
(((2)
To direct)) (b) The ordering of the personal representatives or
trustees to do or abstain from doing any particular act in their fiduciary
capacity;
(((3)
To determine)) (c) The determination of any question arising in the
administration of the estate or trust, including without limitation
questions of construction of wills and other writings;
(((4)
To confer upon)) (d) The grant to the personal representatives or
trustees of any necessary or desirable powers not otherwise granted in
the instrument or given by law that the court determines are not inconsistent
with the provisions or purposes of the will or trust;
(((5)
To amend or conform)) (e) The modification of the will or the trust
instrument in the manner required to qualify the gift thereunder for the
charitable estate tax deduction permitted by federal law, including the
addition of mandatory governing instrument requirements for a charitable
remainder trust as required by final regulations and rulings of the United
States internal revenue service, in any case in which all parties interested in
the trust have submitted written agreements to the proposed changes or written
disclaimer of interest; ((or
(6)
To amend or conform)) (f) The modification of the will or the trust
instrument in the manner required to qualify any gift thereunder for the
benefit of a surviving spouse who is not a citizen of the United States for the
estate tax marital deduction permitted by federal law, including the addition
of mandatory governing instrument requirements for a qualified domestic trust
under section 2056A of the internal revenue code as required by final
regulations and rulings of the United States treasury department or internal revenue
service, in any case in which all parties interested in the trust have
submitted written agreements to the proposed changes or written disclaimer of
interest; ((or
(7)
To resolve any other matter in this title referencing this judicial proceedings
section.)) (g) The determination of the persons entitled to notice under
RCW 11.96.100 and 11.96.110 for the purposes of any judicial proceeding under
this subsection (1) and for the purposes of an agreement under RCW 11.96.170;
or
(h)
The resolution of any other matter that arises under this title and references
this section.
(2)
Any person with an interest in or right respecting the administration of a
nonprobate asset under this title may have a judicial proceeding for the
declaration of rights or legal relations under this title with respect to the
nonprobate asset, including without limitation the following:
(a)
The ascertaining of any class of creditors or others for purposes of chapter
11.-- (section 19 of this act) or 11.-- RCW (sections 31 through 48 of this
act);
(b)
The ordering of a qualified person, the notice agent, or resident agent, as
those terms are defined in chapter 11.-- RCW (sections 31 through 48 of this
act), or any combination of them, to do or abstain from doing any particular
act with respect to a nonprobate asset;
(c)
The ordering of a custodian of any of the decedent's records relating to a
nonprobate asset to do or abstain from doing any particular act with respect to
those records;
(d)
The determination of any question arising in the administration under chapter
11.-- (section 19 of this act) or 11.-- RCW (sections 31 through 48 of this
act) of a nonprobate asset;
(e)
The determination of the persons entitled to notice under RCW 11.96.100 and
11.96.110 for the purposes of any judicial proceeding under this subsection (2)
and for the purposes of an agreement under RCW 11.96.170; and
(f)
The determination of any questions relating to the abatement, rights of
creditors, or other matter relating to the administration, settlement, or final
disposition of a nonprobate asset under this title.
(3)
The provisions of this chapter apply to disputes arising in connection with
estates of ((incompetents or disabled)) incapacitated persons
unless otherwise covered by chapters 11.88 and 11.92 RCW. The provisions of
this chapter shall not supersede the otherwise applicable provisions and
procedures of chapter 11.24, 11.28, 11.40, 11.52, 11.56, or 11.60 RCW with
respect to any rights or legal obligations that are subject to those chapters.
(4)
For the purposes of this section, "a person with an interest in or right
respecting the administration, settlement, or disposition of an interest in a
trust or in the estate of an incapacitated, missing, or deceased person"
includes but is not limited to:
(a)
The trustor if living, trustee, beneficiary, or creditor of a trust and, for a
charitable trust, the attorney general if acting within the powers granted
under RCW 11.110.120;
(b)
The personal representative, heir, devisee, legatee, and creditor of an estate;
(c)
The guardian, guardian ad litem, and ward of a guardianship, and a creditor of
an estate subject to a guardianship; and
(d)
Any other person with standing to sue with respect to any of the matters for
which judicial proceedings are authorized in subsection (1) of this section.
(5)
For the purposes of this section, "any person with an interest in or right
respecting the administration of a nonprobate asset under this title"
includes but is not limited to:
(a)
The notice agent, the resident agent, or a qualified person, as those terms are
defined in chapter 11.-- RCW (sections 31 through 48 of this act);
(b)
The recipient of the nonprobate asset with respect to any matter arising under
this title;
(c)
Any other person with standing to sue with respect to any matter for which
judicial proceedings are authorized in subsection (2) of this section; and
(d)
The legal representatives of any of the persons named in this subsection.
Sec. 56. RCW 11.96.080 and 1985 c
31 s 9 are each amended to read as follows:
Unless
rules of court or a provision of this title requires otherwise, a judicial
proceeding under RCW 11.96.070 may be commenced by petition. The court
shall make an order fixing the time and place for hearing the petition. The
court shall approve the form and content of the notice. Notice of hearing
shall be signed by the clerk of the court.
Sec. 57. RCW 11.96.090 and 1985 c
31 s 10 are each amended to read as follows:
The
clerk of each of the superior courts is authorized to fix the time of hearing
of all applications, petitions and reports in probate and guardianship
proceedings, except the time for hearings upon show cause orders and citations
and except for the time of hearings set under RCW 11.96.080. The authority ((herein))
granted in this section is in addition to the authority vested in the
superior courts and superior court commissioners.
Sec. 58. RCW 11.96.100 and 1985 c
31 s 11 are each amended to read as follows:
(1)
Subject to RCW 11.96.110, in all judicial proceedings under Title 11 RCW that
require notice, such notice shall be personally served ((or mailed to each
trustee, personal representative, heir, beneficiary including devisees,
legatees, and heirs, guardian ad litem, and person having an interest in the
trust or estate whose name and address are known to the petitioner)) on
or mailed to all parties to the dispute at least twenty days prior to the
hearing on the petition((,)) unless ((otherwise)) a different
period is provided by statute or ordered by the court under RCW 11.96.080.
(2)
Proof of ((such)) the service or mailing required in this
section shall be made by affidavit filed at or before the hearing.
((In
addition, notice shall also be given to)) (3) For the purposes of this
section:
(a)
When used in connection with a judicial proceeding under RCW 11.96.070(1),
"parties to the dispute" means each:
(i)
Trustor if living;
(ii)
Trustee;
(iii)
Personal representative;
(iv)
Heir;
(v)
Beneficiary including devisees, legatees, and trust beneficiaries;
(vi)
Guardian ad litem; or
(vii)
Other person
who
has an interest in the subject of the particular proceeding and whose name and
address are known to, or are reasonably ascertainable by, the petitioner, and
also includes the attorney general if required under RCW 11.110.120.
(b)
When used in connection with a judicial proceeding under RCW 11.96.070(2),
"parties to the dispute" means each notice agent, if any, or other
person, who has an interest in the subject of the particular proceeding and
whose name and address are known to, or are reasonably ascertainable by, the
petitioner, and also includes the personal representatives of the estate of the
owner of the nonprobate asset that is the subject of the particular proceeding,
if the subject of the particular proceeding relates to the beneficiary's
liability to a decedent's estate or creditors under section 19 of this act.
(c)
"Notice agent" has the meanings given in section 31 of this act.
Sec. 59. RCW 11.96.110 and 1985 c
31 s 12 are each amended to read as follows:
Notwithstanding
provisions of this chapter to the contrary, there is compliance with the ((notice))
requirements of Title 11 RCW for notice to the beneficiaries of, ((or)) and
other persons interested in, an estate ((or)), a
trust, or ((to beneficiaries or remaindermen)) a nonprobate asset,
including without limitation all living persons who may participate in
the corpus or income of the trust or estate, if notice is given as follows:
(1)
If an interest in an estate ((or)), trust, or nonprobate asset
has been given to persons who compose a certain class upon the happening of a
certain event, notice shall be given to the living persons who would constitute
the class if the event had happened immediately before the commencement of the
proceeding requiring notice.
(2)
If an interest in an estate ((or)), trust, or nonprobate asset
has been given to a living person, and the same interest, or a share in it, is
to pass to the surviving spouse or to persons who are, or may be, the
distributees, heirs, issue, or other kindred of that living person upon the
happening of a future event, notice shall be given to that living person.
(3)
Except as otherwise provided in subsection (2) of this section, if an interest
in an estate ((or)), trust, or nonprobate asset has been
given to a person, a class of persons, or both upon the happening of any future
event, and the same interest or a share of such interest is to pass to another
person, class of persons, or both, upon the happening of an additional future
event, notice shall be given to the living person or persons who would take the
interest upon the happening of the first event.
(4)
Notice shall be given to persons who would not otherwise be entitled to notice
by law if a conflict of interest involving the subject matter of the ((trust
or estate)) proceeding relating to an estate, trust, or nonprobate asset
is known to exist between a person to whom notice is given and a person to whom
notice need not be given under Title 11 RCW.
Any
action taken by the court is conclusive and binding upon each person receiving
actual or constructive notice in the manner provided in this section.
Sec. 60. RCW 11.96.130 and 1985 c
31 s 14 are each amended to read as follows:
All
issues of fact ((joined in probate or trust proceedings)) in any
judicial proceeding under this title shall be tried in conformity with the
requirements of the rules of practice in civil actions((. The probate or
trust)), except as otherwise provided by statute or ordered by the court
under RCW 11.96.030 or other applicable law or rules of court. The judicial
proceeding may be commenced as a new action or as an action incidental to an
existing ((probate or trust)) judicial proceeding relating to
the same trust or estate or nonprobate asset. Once commenced, the action
may be consolidated with an existing ((probate or trust)) proceeding or
converted to a separate action upon the motion of any party for good cause
shown, or by the court on its own motion. If a party is entitled to a trial by
jury and a jury is demanded, and the issues are not sufficiently made up by the
written pleadings on file, the court, on due notice, shall settle and frame the
issues to be tried. If no jury is demanded, the court shall try the issues ((joined)),
and sign and file its findings and decision in writing, as provided for in
civil actions. Judgment on the ((issue joined)) issues, as well
as for costs, may be entered and enforced by execution or otherwise by the
court as in civil actions.
Sec. 61. RCW 11.96.140 and 1985 c
31 s 15 are each amended to read as follows:
Either
the superior court or the court on appeal, may, in its discretion, order costs,
including ((attorneys)) attorneys' fees, to be paid by any party
to the proceedings or out of the assets of the estate or trust or nonprobate
asset, as justice may require.
Sec. 62. RCW 11.96.160 and 1988 c
202 s 19 are each amended to read as follows:
Any
interested party may seek appellate review of any final order, judgment, or
decree of the court((, and such)) respecting any judicial proceedings
under this title. The review shall be in the manner and way provided by
law for appeals in civil actions.
Sec. 63. RCW 11.96.170 and 1988 c
29 s 7 are each amended to read as follows:
(1)
If((, as to the)) all required parties to the dispute agree as to a
matter in dispute, the ((trustor, grantor, all parties beneficially interested
in the estate or trust with respect to such matter, and any current fiduciary
of such estate or trust, who are also included in RCW 11.96.070 and who are
entitled to notice under RCW 11.96.100 and 11.96.110 agree on any matter listed
in RCW 11.96.070 or any other matter in Title 11 RCW referencing this
nonjudicial resolution procedure, then the)) agreement shall be evidenced
by a written agreement executed by all ((necessary persons as provided in
this section)) required parties to the dispute. Those persons may
reach an agreement concerning a matter in RCW 11.96.070(((4))) (1)(d)
as long as those persons, rather than the court, determine that the powers to
be conferred are not inconsistent with the provisions or purposes of the will
or trust.
(2)
If necessary, ((the personal representative or trustee)) any one or
more of the required parties to the dispute may petition the court for the
appointment of a special representative to represent a ((person interested
in the estate or trust who is a minor, incompetent, disabled, or)) required
party to the dispute who is incapacitated by reason of being a minor or
otherwise, who is yet unborn or unascertained, or ((a person)) whose
identity or address is unknown. The special representative has authority to
enter into a binding agreement under this section on behalf of the
person or beneficiary. The special representative may be appointed for more
than one person or class of persons if the interests of such persons or ((class))
classes are not in conflict. Those entitled to receive notice for
persons or beneficiaries described in RCW 11.96.110 may enter into a binding
agreement on behalf of such persons or beneficiaries.
(3)
The special representative shall be a lawyer licensed to practice before the
courts of this state or an individual with special skill or training in the
administration of estates ((or)), trusts, or nonprobate
assets, as applicable. The special representative shall have no interest
in any affected estate ((or)), trust, or nonprobate asset,
and shall not be related to any personal representative, trustee, beneficiary,
or other person interested in the estate ((or)), trust, or
nonprobate asset. The special representative is entitled to reasonable
compensation for services ((which)) and, if applicable, that
compensation shall be paid from the principal of the estate ((or)),
trust, or nonprobate asset whose beneficiaries are represented. Upon
execution of the written agreement, the special representative shall be
discharged of any further responsibility with respect to the estate ((or)),
trust, or nonprobate asset.
(4)
The written agreement or a memorandum summarizing the provisions of the written
agreement may, at the option of any ((person interested in the estate or
trust)) of the required parties to the dispute, be filed with the
court having jurisdiction over the estate ((or)), trust,
nonprobate asset, or other matter affected by the agreement. The person
filing the agreement or memorandum shall, within five days ((thereof))
after the agreement or memorandum is filed with the court, mail a copy
of the agreement, the summarizing memorandum if one was filed with the
court, and a notice of the filing to each ((person interested in the
estate or trust)) of the required parties to the dispute whose
address is known or is reasonably ascertainable by the person. Notice
shall be in substantially the following form:
CAPTION NOTICE OF FILING OF
OF CASE AGREEMENT OR
MEMORANDUM
OF
AGREEMENT
Notice is hereby
given that the attached document was filed by the undersigned in the above
entitled court on the . . . . . . day of
. . . . . ., ((19. .)) . . . . .
Unless you file a petition objecting to the agreement within 30 days of the
above specified date the agreement will be deemed approved and will be
equivalent to a final order binding on all persons interested in the ((estate
or trust)) subject of the agreement.
If you file and serve
a petition within the period specified, you should ask the court to fix a time
and place for the hearing on the petition and provide for at least ((a))
ten days' notice to all persons interested in the ((estate or trust)) subject
of the agreement.
DATED this
. . . . . . day of
. . . . . ., ((19. .)) . . . . .
....................................
(((Party
to the agreement)) Name of person filing the agreement or memorandum
with the court)
(5) Unless a ((person
interested in the estate or trust)) required party to the dispute
files a petition objecting to the agreement within thirty days ((of)) after
the filing of the agreement or the memorandum, the agreement will be deemed
approved and will be equivalent to a final order binding on all ((persons
interested in the estate or trust. If all persons interested in the estate or
trust)) parties to the dispute. If all required parties to the dispute
waive the notice required by this section, the agreement will be deemed
approved and will be equivalent to a final order binding on all such
persons ((interested in the estate or trust)) effective upon the date of
filing.
(6) For the
purposes of this section:
(a) "Matter
in dispute" includes without limitation any matter listed in RCW 11.96.070
or any other matter in this title referencing this nonjudicial resolution
procedure;
(b) "Parties
to the dispute" has the meaning given to that term in RCW 11.96.100(3) (a)
and (b), as applicable;
(c) "Required
parties to the dispute" means those parties to the dispute who are
entitled to notice under RCW 11.96.100 and 11.96.110, and, when used in the
singular, means any one of the required parties to the dispute; and
(d)
"Estate" includes the estate of a deceased, missing, or incapacitated
person.
Sec. 64. RCW 11.96.180 and 1985 c
31 s 19 are each amended to read as follows:
(1)
The court, upon its own motion or on request of ((a person interested in the
trust or estate)) any one or more of the required parties to the dispute
as that term is defined in RCW 11.96.170(6)(c), at any stage of a judicial
proceeding or at any time in a nonjudicial resolution procedure, may appoint a
guardian ad litem to represent the interests of a minor, incapacitated, unborn,
or unascertained person, or person whose identity ((and)) or
address ((are)) is unknown, or a designated class of persons who
are not ascertained or are not in being. When not precluded by a conflict of
interest, a guardian ad litem may be appointed to represent several persons or
interests.
(2)
((For the purposes of this section, a trustee is a person interested in the
trust and a personal representative is a person interested in an estate.
(3)))
The court-appointed guardian ad litem supersedes the special
representative if so provided in the court order.
(((4)))
(3) The court may appoint the guardian ad litem at an ex parte hearing,
or the court may order a hearing as provided in RCW 11.96.070 with notice as
provided in RCW 11.96.080, 11.96.100, and 11.96.110.
Sec. 65. RCW 11.98.200 and 1993 c
339 s 2 are each amended to read as follows:
Due
to the inherent conflict of interest that exists between a trustee and a
beneficiary of a trust, unless the terms of a trust refer specifically to RCW
11.98.200 through 11.98.240 and provide expressly to the contrary, the powers
conferred upon a trustee who is a beneficiary of the trust, other than the
trustor as a trustee, ((and other than the decedent's spouse or the
testator's spouse where the spouse is the trustee of a trust for which a
marital deduction is or was otherwise allowed or allowable, whether or not an
appropriate marital deduction election was in fact made,)) cannot be
exercised by the trustee to make:
(1)
Discretionary distributions of either principal or income to or for the benefit
of the trustee, except to provide for the trustee's health, education,
maintenance, or support as described under section 2041 or 2514 of the Internal
Revenue Code and the applicable regulations adopted under that section;
(2)
Discretionary allocations of receipts or expenses as between principal and
income, unless the trustee acts in a fiduciary capacity whereby the trustee has
no power to enlarge or shift a beneficial interest except as an incidental
consequence of the discharge of the trustee's fiduciary duties; or
(3)
Discretionary distributions of either principal or income to satisfy a legal ((support))
obligation of the trustee.
A
proscribed power under this section that is conferred upon two or more trustees
may be exercised by the trustees that are not disqualified under this section.
If there is no trustee qualified to exercise a power proscribed under this
section, a person described in RCW 11.96.070 who is entitled to seek judicial
proceedings with respect to a trust may apply to a court of competent
jurisdiction to appoint another trustee who would not be disqualified, and the
power may be exercised by another trustee appointed by the court.
Alternatively, another trustee who would not be disqualified may be appointed in
accordance with the provisions of the trust instrument if the procedures are
provided, or as set forth in RCW 11.98.039 as if the office of trustee were
vacant, or by a nonjudicial dispute resolution agreement under RCW 11.96.170.
Sec. 66. RCW 11.98.240 and 1993 c
339 s 6 are each amended to read as follows:
(1)(a)(i)
RCW 11.98.200 and 11.98.210 respectively apply to a trust established under a
will, codicil, trust agreement, declaration of trust, deed, or other instrument
executed after July 25, 1993, unless the instrument's terms refer specifically
to RCW 11.98.200 or 11.98.210 respectively and provide expressly to the
contrary. However, except for RCW 11.98.200(3), the 1994 c ... (this act)
amendments to RCW 11.98.200 apply to a trust established under a will, codicil,
trust agreement, declaration of trust, deed, or other instrument executed after
the effective date of this section, unless the instrument's terms refer
specifically to RCW 11.98.200 and provide expressly to the contrary.
(ii)
Notwithstanding (a)(i) of this subsection, for the purposes of this subsection
a codicil to a will or an amendment to a trust does not cause that instrument
to be executed after ((the aforementioned date)) July 25, 1993,
unless the codicil or amendment clearly shows an intent to have RCW 11.98.200
or 11.98.210 apply.
(b)
Notwithstanding (a) of this subsection, RCW 11.98.200 and 11.98.210
respectively apply to a trust established under a will or codicil of a decedent
dying on or after July 25, 1993, and to an inter vivos trust to which the
trustor had on or after July 25, 1993, the power to terminate, revoke, amend,
or modify, unless:
(i)
The terms of the instrument specifically refer to RCW 11.98.200 or 11.98.210
respectively and provide expressly to the contrary; or
(ii)
The decedent or the trustor was not competent, on July 25, 1993, to change the
disposition of his or her property, or to terminate, revoke, amend, or modify
the trust, and did not regain his or her competence to dispose, terminate,
revoke, amend, or modify before the date of the decedent's death or before the
trust could not otherwise be revoked, terminated, amended, or modified by the
decedent or trustor.
(2)
RCW 11.98.200 neither creates a new cause of action nor impairs an existing
cause of action that, in either case, relates to a power proscribed under RCW
11.98.200 that was exercised before July 25, 1993. RCW 11.98.210 neither
creates a new cause of action nor impairs an existing cause of action that, in
either case, relates to a power proscribed, limited, or qualified under RCW
11.98.210.
NEW SECTION. Sec.
67. A new section is added to
chapter 11.94 RCW to read as follows:
(1)
The restrictions in RCW 11.95.100 through 11.95.150 on the power of a person
holding a power of appointment apply to attorneys-in-fact holding the power to
appoint to or for the benefit of the powerholder.
(2)
This section applies retroactively to July 25, 1993.
Sec. 68. RCW 11.100.035 and 1989 c
97 s 1 are each amended to read as follows:
(1)
Within the standards of judgment and care established by law, and subject to
any express provisions or limitations contained in any particular trust
instrument, guardians, trustees and other fiduciaries, whether individual or
corporate, are authorized to acquire and retain securities of any open-end or
closed-end management type investment company or investment trust registered
under the federal investment company act of 1940 as now or hereafter amended.
(2)
Within the limitations of subsection (1) of this section, whenever the trust
instrument directs, requires, authorizes, or permits investment in obligations
of the United States government, the trustee may invest in and hold such
obligations either directly or in the form of securities of, or other interests
in, an open-end or closed-end management type investment company or investment
trust registered under the federal investment company act of 1940, as now or
hereafter amended, if both of the following conditions are met:
(a)
The portfolio of the investment company or investment trust is limited to
obligations of the United States and to repurchase agreements fully
collateralized by such obligations; and
(b)
The investment company or investment trust takes delivery of the collateral for
any repurchase agreement either directly or through an authorized custodian.
(3)
If the fiduciary is a bank or trust company, then the fact that the fiduciary,
or an affiliate of the fiduciary, provides services to the investment company
or investment trust such as that of an investment advisor, custodian, transfer
agent, registrar, sponsor, distributor, manager, or otherwise, and is receiving
reasonable compensation for those services does not preclude the bank or trust
company from investing or reinvesting in the securities of the open-end or
closed-end management investment company or investment trust. The fiduciary
shall furnish a copy of the prospectus relating to the securities to each
person to whom a regular periodic accounting would ordinarily be rendered under
the trust instrument or under RCW 11.106.020, upon the request of that person.
The restrictions set forth under RCW 11.100.090 may not be construed as
prohibiting the fiduciary powers granted under this subsection.
Sec. 69. RCW 82.32.240 and 1988 c
64 s 21 are each amended to read as follows:
Any
tax due and unpaid and all increases and penalties thereon, shall constitute a
debt to the state and may be collected by court proceedings in the same manner
as any other debt in like amount, which remedy shall be in addition to any and
all other existing remedies.
In
all cases of probate, insolvency, assignment for the benefit of creditors, or
bankruptcy, involving any taxpayer who is, or decedent who was, engaging in
business, the claim of the state for said taxes and all increases and penalties
thereon shall be a lien upon all real and personal property of the taxpayer,
and the mere existence of such cases or conditions shall be sufficient to
create such lien without any prior or subsequent action by the state, and in
all such cases it shall be the duty of all administrators, executors,
guardians, receivers, trustees in bankruptcy or assignees for the benefit of
creditors, to notify the department of revenue of such administration,
receivership or assignment within sixty days from the date of their appointment
and qualification.
The
lien provided for by this section shall attach as of the date of the assignment
for the benefit of creditors or of the initiation of the probate, insolvency,
or bankruptcy proceedings: PROVIDED, That this sentence shall not be construed
as affecting the validity or priority of any earlier lien that may have
attached previously in favor of the state under any other section of this
title.
Any
administrator, executor, guardian, receiver or assignee for the benefit of
creditors not giving the notification as provided for above shall become
personally liable for payment of the taxes and all increases and penalties
thereon to the extent of the value of the property subject to administration
that otherwise would have been available for the payment of such taxes,
increases, and penalties by the administrator, executor, guardian, receiver, or
assignee.
As
used in this section, "probate" includes the nonprobate claim
settlement procedure under chapter 11.-- RCW (sections 31 through 48 of this
act), and "executor" and "administrator" includes any
notice agent acting under chapter 11.-- RCW (sections 31 through 48 of this
act).
Sec. 70. RCW 83.100.020 and 1993 c
73 s 9 are each amended to read as follows:
As
used in this chapter:
(1)
"Decedent" means a deceased individual;
(2)
"Department" means the department of revenue, the director of that
department, or any employee of the department exercising authority lawfully
delegated to him by the director;
(3)
"Federal credit" means (a) for a transfer, the maximum amount of the
credit for state taxes allowed by section 2011 of the Internal Revenue Code;
and (b) for a generation-skipping transfer, the maximum amount of the credit
for state taxes allowed by section 2604 of the Internal Revenue Code;
(4)
"Federal return" means any tax return required by chapter 11 or 13 of
the Internal Revenue Code;
(5)
"Federal tax" means (a) for a transfer, a tax under chapter 11 of the
Internal Revenue Code; and (b) for a generation-skipping transfer, the tax
under chapter 13 of the Internal Revenue Code;
(6)
"Generation-skipping transfer" means a "generation‑skipping
transfer" as defined and used in section 2611 of the Internal Revenue
Code;
(7)
"Gross estate" means "gross estate" as defined and used in
section 2031 of the Internal Revenue Code;
(8)
"Nonresident" means a decedent who was domiciled outside Washington
at his death;
(9)
"Person" means any individual, estate, trust, receiver, cooperative
association, club, corporation, company, firm, partnership, joint venture,
syndicate, or other entity and, to the extent permitted by law, any federal,
state, or other governmental unit or subdivision or agency, department, or
instrumentality thereof;
(10)
"Person required to file the federal return" means any person
required to file a return required by chapter 11 or 13 of the Internal Revenue
Code, such as the personal representative of an estate; or a transferor,
trustee, or beneficiary of a generation-skipping transfer; or a qualified heir
with respect to qualified real property, as defined and used in section
2032A(c) of the Internal Revenue Code;
(11)
"Property" means (a) for a transfer, property included in the gross
estate; and (b) for a generation-skipping transfer, all real and personal
property subject to the federal tax;
(12)
"Resident" means a decedent who was domiciled in Washington at time
of death;
(13)
"Transfer" means "transfer" as used in section 2001 of the
Internal Revenue Code, or a disposition or cessation of qualified use as
defined and used in section 2032A(c) of the Internal Revenue Code;
(14)
"Trust" means "trust" under Washington law and any
arrangement described in section 2652 of the Internal Revenue Code; and
(15)
"Internal Revenue Code" means the United States Internal Revenue Code
of 1986, as amended or renumbered on ((July 25, 1993)) the effective
date of this section.
Sec. 71. RCW 83.110.010 and 1993 c
73 s 10 are each amended to read as follows:
As
used in this chapter, the following terms have the meanings indicated unless
the context clearly requires otherwise.
(1)
"Estate" means the gross estate of a decedent as determined for the
purpose of federal estate tax and the estate tax payable to this state;
(2)
"Excise tax" means the federal excise tax imposed by section 4980A(d)
of the Internal Revenue Code, and interest and penalties imposed in addition to
the excise tax;
(3)
"Fiduciary" means executor, administrator of any description, and
trustee;
(4)
"Internal Revenue Code" means the United States Internal Revenue Code
of 1986, as amended or renumbered on ((July 25, 1993)) the effective
date of this section;
(5)
"Person" means any individual, partnership, association, joint stock
company, corporation, government, political subdivision, governmental agency,
or local governmental agency;
(6)
"Persons interested in retirement distributions" means any person
determined as of the date the excise tax is due, including a personal
representative, guardian, trustee, or beneficiary, entitled to receive, or who
has received, by reason of or following the death of a decedent, any property
or interest therein which constitutes a retirement distribution as defined in
section 4980A(e) of the Internal Revenue Code, but this definition excludes any
alternate payee under a qualified domestic relations order as such terms are
defined in section 414(p) of the Internal Revenue Code;
(7)
"Person interested in the estate" means any person, including a
personal representative, guardian, or trustee, entitled to receive, or who has
received, from a decedent while alive or by reason of the death of a decedent
any property or interest therein included in the decedent's taxable estate;
(8)
"Qualified heir" means a person interested in the estate who is
entitled to receive, or who has received, an interest in qualified real
property;
(9)
"Qualified real property" means real property for which the election
described in section 2032A of the Internal Revenue Code has been made;
(10)
"State" means any state, territory, or possession of the United
States, the District of Columbia, or the Commonwealth of Puerto Rico; and
(11)
"Tax" means the federal estate tax, the excise tax defined in
subsection (2) of this section, and the estate tax payable to this state and
interest and penalties imposed in addition to the tax.
NEW SECTION. Sec.
72. The following acts or
parts of acts are each repealed:
(1) RCW 11.12.050 and 1965 c 145 s
11.12.050;
(2) RCW 11.12.090 and 1965 c 145 s
11.12.090;
(3) RCW 11.12.130 and 1965 c 145 s
11.12.130;
(4) RCW 11.12.140 and 1965 c 145 s
11.12.140;
(5) RCW 11.12.150 and 1965 c 145 s
11.12.150.
(6) RCW 11.12.200 and 1965 c 145 s
11.12.200;
(7) RCW 11.12.210 and 1965 c 145 s
11.12.210;
(8) RCW 11.56.015 and 1965 c 145 s
11.56.015;
(9) RCW 11.56.140 and 1965 c 145 s
11.56.140;
(10) RCW 11.56.150 and 1965 c 145 s
11.56.150;
(11) RCW 11.56.160 and 1965 c 145 s
11.56.160; and
(12) RCW 11.56.170 and 1965 c 145 s
11.56.170.
NEW SECTION. Sec.
73. (1) Sections 4 through 8
of this act shall constitute a new chapter in Title 11 RCW.
(2)
Section 19 of this act shall constitute a new chapter in Title 11 RCW.
(3)
Sections 31 through 48 of this act shall constitute a new chapter in Title 11
RCW.
NEW SECTION. Sec.
74. The 1994 c ... (this act)
amendments to RCW 11.98.200(3) are remedial in nature and apply retroactively
to July 25, 1993.
NEW SECTION. Sec.
75. (1) Except as provided in
section 74 of this act, sections 1 through 72 of this act shall take effect
January 1, 1995.
(2) Section 3 of this act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state
government and its existing public institutions, and shall take effect
immediately.
