HOUSE BILL REPORT

SB 6394

BYSenators Nelson, Talmadge and Newhouse

Modifying provisions regarding escheat property and small estates.

House Committe on Judiciary

Majority Report:  Do pass.  (18)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Brough, Dellwo, Forner, Hargrove, Inslee, P. King, R. Meyers, Moyer, H. Myers, Schmidt, Scott, D. Sommers, Tate and Wineberry.

House Staff:Rob Lopez (786-7591)

                  Bill Perry (786-7123)

AS PASSED HOUSE MARCH 2, 1990

BACKGROUND:

The legislature has delegated the administration of escheat property laws to the Department of Revenue.  Escheat property is defined as property that reverts to the state for the want of an individual competent to inherit it.

Technical legislation will provide the Department of Revenue with procedures to facilitate the administration of escheat property laws.

Currently, the superintendent of a state institution may transfer a deceased inmate's property which does not exceed $1,000 in value to the inmate's next of kin upon being furnished by that individual with an affidavit verifying the individual's relationship to the decedent.  The law does not require that the individual provide proof of the inmate's death, nor does it specify that the affidavit must meet the requirements of the small estates affidavit procedure of Chapter 11.62 RCW.

SUMMARY:

The Department of Revenue waives its right to administer escheat property in probate proceedings unless it applies to do so within forty days of having received the required notice of pending probate proceedings.

The superintendent of a state institution is authorized to transfer a deceased inmate's property valued at less than $30,000 to successors when the successors have furnished proof of decedent's death and an affidavit adequate under the small estates affidavit procedure of Chapter 11.62 RCW.  The designation "next of kin" is changed to "successor or successors."

Escheat property may be transferred to the Department of Revenue under the small estates affidavit procedure.  Procedures are established for the Department's collection of debts or personal property owing to the decedent's estate.

Whenever an affidavit is prepared for transfer of a descendent's property to the Department of Revenue, the Department must file a copy of the affidavit with the clerk of a court which has jurisdiction over actual or possible probate administration of the descendent's estate.  Any claims to escheated funds must be commenced within seven years from the Department's filing of the affidavit.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Michael D. Carrico, Washington State Bar Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The legislation will force probate attorneys to better coordinate with the Department of Revenue.  The legislation will also permit the state to use the small estate affidavit procedure to claim escheat property and avoid the courts.

House Committee - Testimony Against:      None.