As of March 2014, the Washington State
Legislature passed new legislation that will allow for the transfer of
real property by deed effective upon the grantor's death.
This type legislation already existed in a number of other states.
One benefit of this new legislation is the ability to simplify things and avoiding probate by allowing the transfer of real property at death directly to intended beneficiaries which may save time and cost.
Prior to this law, Real Property could only be transferred at death without a probate in very limited circumstances.
One major drawback to the act is a provision giving DSHS the right to file liens against a "transfer on death” property for up to 24 months after death of the decedent for long term care services he or she received.
Currently, if Special Notice to Creditors is given in the manner prescribed in RCW 11.42.020 or RCW 11.40.020 the agent or executor of an estate can limit the filing of creditor’s claims to a 4 month window. If a creditor fails to file a claim within this period, their claim is forever barred.
The new "transfer on death” deed legislation does not reference this limited creditor’s claim period. This leaves open for interpretation whether DSHS can still file a lien against a "transfer on death” property past the four months bar when notice to creditors is properly given.
I am not a lawyer, nor do I play one on TV. The above information is for educational purposes only. Always consult with an attorney prior to making any legal decisions.
This type legislation already existed in a number of other states.
One benefit of this new legislation is the ability to simplify things and avoiding probate by allowing the transfer of real property at death directly to intended beneficiaries which may save time and cost.
Prior to this law, Real Property could only be transferred at death without a probate in very limited circumstances.
One major drawback to the act is a provision giving DSHS the right to file liens against a "transfer on death” property for up to 24 months after death of the decedent for long term care services he or she received.
Currently, if Special Notice to Creditors is given in the manner prescribed in RCW 11.42.020 or RCW 11.40.020 the agent or executor of an estate can limit the filing of creditor’s claims to a 4 month window. If a creditor fails to file a claim within this period, their claim is forever barred.
The new "transfer on death” deed legislation does not reference this limited creditor’s claim period. This leaves open for interpretation whether DSHS can still file a lien against a "transfer on death” property past the four months bar when notice to creditors is properly given.
I am not a lawyer, nor do I play one on TV. The above information is for educational purposes only. Always consult with an attorney prior to making any legal decisions.
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