Washington law sets contract rules for inheritance buyers

People who regularly buy a beneficiary’s share of an estate must follow contract, disclosure, and filing rules. This applies when someone regularly buys an estate beneficiary’s interest for money under a written agreement, subject to the stated family and estate-claim exceptions. The rules exclude buyers who are beneficiaries, have another claim to an estate distribution, or are related to the beneficiary or deceased person. The agreement must list the payment, estimated value, and fees in bold. Certain terms make it voidable. A court may review the deal and refuse distribution or set terms it finds just if it finds specified problems. The agreement and required declaration must be filed within 30 days after signing or the start of probate, whichever is later, and at least 14 days before a motion for distribution. The agreement must also be served on the estate’s personal representative.

Heir finders who receive part of an heir’s estate share as payment must follow agreement and disclosure rules. This applies when someone regularly helps locate heirs or estate assets, or obtain documents about heirs’ interests, in return for part of an heir’s estate share. The heir finder’s payment must be limited to the agreed share and may be received only after the heir receives an estate distribution. The agreement must describe the heir’s interest, the finder’s share, and the services. Certain terms make it voidable. A court may review the deal and refuse distribution or set terms it finds just if it finds specified problems. The agreement and required declaration must be filed within 45 days after signing or the start of probate, whichever is later, and at least 14 days before a motion for distribution. The agreement and supporting documents must also be served on the estate’s personal representative.

Personal representatives must file reports about notice to interested people and estate financial accounts, and report on estate affairs at least yearly until a final report. These reporting duties apply to personal representatives handling an estate. A notice report is due within 30 days after appointment, and an account report is due within 30 days after opening an estate account. A court or interested person may request an estate affairs report. Unless the court sets another date or finds an undue burden, it is due within 90 days; no more than two requested reports are required each year. The notice and account reports are due within 30 days after appointment and account opening, respectively. Estate affairs reports are due at least once a year from appointment until a final report.

A court may appoint a suitable person to handle an estate after 90 days, with limits on that person’s compensation and dealings with estate assets. These limits apply to a person appointed under this provision after those with appointment rights have not petitioned for more than 90 days. The court may appoint a suitable person if those entitled to appointment have not petitioned for more than 90 days after the death. The appointee receives only compensation allowed by law. Unless the court approves, the appointee may not buy estate assets or receive sale proceeds for personal benefit. Someone outside specified entities may not receive nonintervention powers and may file no more than two appointment petitions under this provision each year. The court may appoint a suitable person after more than 90 days have passed since the death without a petition from those entitled to appointment. The limits apply during that person’s administration of the estate.