What is a non-judicial settlement agreement?
A non-judicial settlement agreement (NJSA) is an agreement between the heirs of an estate or other parties, like creditors, that is entered into without going to court. It is a way for heirs to agree on how to divide or handle the estate without court intervention. In Washington state, an NJSA must be in writing and include the names of all parties involved. It should also specify the details of the agreement and be signed by all of the involved parties. An NJSA may be useful when heirs are unable to agree on the distribution of an estate, or if the deceased did not have a valid will or trust and there is no clear direction on how the estate should be handled. It may also be used in cases where an estate includes both probate and non-probate assets, and tax issues need to be addressed. The agreement should be created in good faith and involve a fair division of the estate. It must conform to the Washington Inheritance Law as well as federal laws, such as the Internal Revenue Code. While the agreement is not legally binding, the terms of the agreement may be enforced in court if necessary. An NJSA can provide a way for heirs to reach an agreement without having to go through the courts. It is important to make sure that all parties understand the agreement and are satisfied with the outcome before signing the document.
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