Washington § 11.56.295 - Heir finder — Heir's interest in estate — Conditions.

(1) This section applies in circumstances where an heir finder has acquired a partial share of an heir's interest in an estate.

(2) For purposes of this section, an heir finder is a person who satisfies both of the following criteria:

(a) The person regularly engages, directly or indirectly, in the provision of services related to locating heirs or estate assets or obtaining documentation regarding heirs' interests in estates; and

(b) In consideration for providing such services to the heir, the person acquired a partial share of the heir's interest in the estate pursuant to a written agreement.

(3) An agreement to acquire a partial share of an heir's interest in an estate is effective only if all of the following conditions are met:

(a) Compensation due to the heir finder for services rendered is limited to the partial share described in the agreement, and receipt of such compensation is contingent upon the heir first receiving his or her distribution from the estate;

(b) The agreement is reduced to writing, signed by the heir and heir finder, and timely delivered to the heir;

(c) The documents signed by and delivered to the heir are provided in at least 10-point type and are in the same language principally used in any discussion or negotiation leading to the execution of the agreement;

(d) The agreement signed by the heir is filed with the court and served on the personal representative personally or by written or electronic means not later than 45 days following the date of its execution or the initiation of probate proceedings, whichever occurs later, and not less than 14 days prior to the motion for distribution. Prior to filing or serving such agreement, the heir finder must redact any personally identifying information about the heir, other than the name and address of the heir, from the agreement;

(e) The heir finder executes a declaration or affidavit attesting that the requirements of this section have been satisfied, and that declaration or affidavit is filed with the court no later than 45 days following the date of the agreement's execution or the initiation of probate proceedings, whichever occurs later, and not less than 14 days prior to the motion for distribution; and

(f) The declaration or affidavit, the agreement, and any other documentation supporting the agreement are served on the personal representative personally or by written or electronic means concurrently with filing the declaration or affidavit with the court.

(4) An agreement to acquire a partial share of an heir's interest in an estate must include the following terms in bold type, in addition to any other terms:

(a) A plain language description of the heir's interest, the percentage of such interest constituting the heir finder's share in the event of distribution to the heir, and an option for the heir to obtain from the heir finder a good faith estimate of the value of the interest and the value of the partial share once such values are reasonably ascertainable; and

(b) A plain language description of all services provided to the heir in exchange for the partial share of the heir's interest.

(5) An agreement to acquire a partial share of an heir's interest in an estate is voidable if it contains any of the following provisions:

(a) A provision holding harmless the heir finder;

(b) A provision requiring binding arbitration;

(c) A provision granting to the heir finder agency powers to represent the heir's interests in the estate beyond the heir's interest described in the agreement;

(d) A provision granting to the heir finder the power to hire or select the personal representative to administer the estate;

(e) A provision requiring payment by the heir to the heir finder for services relating to matters beyond the heir's interest described in the agreement;

(f) A provision permitting the heir finder recourse against the heir if the partial share of the heir's interest has a value less than the value anticipated by the heir finder at the time of the agreement; or

(g) Any provisions which, when read together, effectively assign full ownership of the heir's interest to the heir finder.

(6) The court on its own motion, or on the motion of the personal representative or other interested person, may inquire into the circumstances surrounding the agreement to acquire the partial share of the heir's interest to determine that the requirements of this section have been satisfied.

(7) The court may refuse to order distribution under the agreement, or may order distribution of assets on any terms that the court considers just and proper, if the court finds any of the following:

(a) The heir finder's partial share of the heir's interest is grossly unreasonable;

(b)(i) The agreement was obtained by fraud, duress, or undue influence, or contained unconscionable terms at the time of the agreement;

(ii) For purposes of this subsection (7)(b), there is a rebuttable presumption that the agreement was obtained by undue influence if both of the following conditions are met:

(A) The partial share was acquired from an heir whose name and address were both already identified in a petition filed pursuant to RCW 11.28.110; and

(B) The heir's interest in which the partial share was acquired included an asset already known to the heir or the personal representative;

(c) In addition to acquiring a partial share of an heir's interest in the estate, the heir finder, or a principal or agent of, or person acting at the behest of or in concert with, the heir finder, also purchased a major probate asset of the estate, whether such asset was identified under RCW 11.28.110(1)(d) or identified subsequently, for substantially less than fair market value; or

(d) The heir finder did not substantially comply with the requirements of this section.

(8) For a willful violation of the requirements of this section, the court may order the heir finder to pay to the heir up to three times the value of the partial share of the heir's interest, in addition to any other sanction or remedy.

(9) Notice of any motion brought under this section must be served on the heir and on the heir finder at least 14 days prior to the hearing.