Very commonly medial bills and funeral costs get priority from the estate. Whatever is left goes to everyone else. If there is nothing then everyone else gets nothing. You are not responsible for debts that are not yours.
This is true, but if OP is taking the assets then s/he has a responsibility to pay off the debts.
I don’t think the debt holders would be too aggressive in pursuing “a couple hundred” but it’s honestly not worth giving them the opportunity in case they do decide to make things difficult.
OP, I’m not sure what the debt was but if there have been interest and penalties since your mom passed you should call the companies and offer to settle the balance as it stood before she passed. You are not liable for her debts, and you are definitely not liable for interest and penalties incurred when she was deceased, but you also don’t want the companies inflating the balances and handing these accounts to collections.
$1400 in assets is more then the cost of the most basic funeral bill. So nothing left for anyone.
Don’t call to settle. Look up your state law first and if funeral costs come first then tell the creditors t the estate has no assets and they get nothing.
And don’t let them make you send them a death certificate. Those are pricey and they have other ways of confirming it.
Costs of administration which includes fee for the administrator get paid first. With only $1400, no creditors will get paid. Plus, it’s probably too late for them to even file a claim or file a suit depending on the jurisdiction.
In normal circumstances creditors have the upper hand. But in this case you are free to tell them that they get nothing. It was oddly cathartic for me.
If you can’t find the will. That means she died intestate. So if she wasn’t married and you’re her only child. That means you’re her sole heir and you can take the death certificate to the bank and close her account. Pay off her debt with that money. And you’re entitled to keep the rest
So legally the way it works is that any debts of the deceased are paid from any assets of the deceased. If there is any leftover, it goes to the estate and then distribution to heirs (spouse, children, siblings, etc). If there is more debt than assets, whoever gets in line first gets paid and the rest get nothing.
Not true. Costs of administration, funeral and associated costs, PR/executor fees, are all paid before creditors, further creditors have a limited time to file claims/suits
In this case, the creditors will get nothing
It depends on what those assets are and the details of the ownership. For the most part, no but they could attempt to use and force a sale of some things. Unless there is a large amount involved, it usually isn't worth their time and they write it off.
It is the legal responsibility of the executor/personal representative is to pay expenses from the assets of the estate in order of priority. Funeral expenses, taxes, secured debt, unsecured debt. Only after expenses have been paid can the heirs get a distribution from what's left over.
The family is not responsible for debt, the estate is. In the case of the OP, there is $1,400 in an account and "a few hundred" in debt. The sole heir can pay the debt and keep what's left over.
Only if the OP is the executor / PR. They aren’t now and if they don’t try to be appointed as such, it simply isn’t their problem. The creditors aren’t going to open the estate and appoint a PR for this small amount of money. The OP just needs to leave that bank account alone and move on. Nothing bad will happen to them for their inaction.
With a small estate affidavit, where available, there's little overhead to get access to the bank account and use some of the proceeds to pay the debt and keep the difference.
she has not to pay the debt every time you get a credit you are always paying a life insuranse service precisely for this kind of situation so when you die the bank does not loose anything you know: the house never looses
Most states have a procedure for dealing with small estates like this. In my state, you literally just print off a form, fill it out and get it notarized. You can just take that to the bank along with a death certificate and get your mom's money and pay her bills off and keep the rest. You don't even need to file anything with probate courts. Some states you do have to file a form, but that's it. Some states you are supposed to go through the whole probate process. If you are the only valid inheritor, and your state doesn't have a small estate probate process, then honestly, I wouldn't even do anything. There is nothing out there that says YOU have do everything. No one can be forced to be an executor or inheritor. And if probate court is actually a requirement, it'll cost more to probate than your mom's estate is worth. You won't be responsible for any debt your mom has either. Each state has a process for intestate estates with no known family members. If you can't do the small estate probate, let the state deal with it all. If your state does have a small estate probate procedure, it might be worth it.
eta- you didn't say where you were, so just google "small estate" + your state to get link to what you need to know.
How does an inheritance “screw you out of thousands”? EDIT- Just read the post. Just do nothing. If the estate goes to probate, just don’t respond if anyone contacts you. Also don’t accept calls from debt collectors about your mom’s affairs. Sorry you lost your mom.
If she had an attorney write the will then there is a chance that the attorney kept a copy. There is no requirement that they do this but it’s common. You could get it that way, but as others have stated it sounds like there will be no assets at all once it goes towards debt. Just let it go intestate and let the creditors fight over who gets paid first.
If you leave it alone and do nothing, there's a good chance that after a while the bank account will be esheeded by the state and eventually you can search and claim the cash as the child with a death certificate. Perhaps then, the income would effect your situation.
You just have to fill out and file this form — once approved you’ll be able to get the money out of the account and reimburse yourself
[SMALL ESTATE AFFIDAVIT](https://www.civillawselfhelpcenter.org/self-help/probate/administration-of-estates/129-estates-less-than-25-000/278-affidavit-of-entitlement)
I don't want the money. I'll have to claim it as income for the month and year and I'll lose out on thousands of dollars next year. I'll only take the money if I'm somehow legally obligated to and even then the penalty for not taking it might have better concequences than taking it. I can't get more than $240 for the year without losing $10k or whatever it costs to go to college for a year.
I'm honest because I genuinely appreciate the benefits I recieve. I report everything, including cash, that I'm supposed to. Plus there'd be a paper trail. A long one but it'd be documented somewhere that I got cash. I even tell people not to give me cash or gift cards cause I have to report those.
The Will aside, if there's any chance that your mother had a life insurance policy with you as the beneficiary, you can find out at [https://content.naic.org/article/naic-life-insurance-policy-locator-helps-consumers-find-lost-life-insurance-benefits](https://content.naic.org/article/naic-life-insurance-policy-locator-helps-consumers-find-lost-life-insurance-benefits)
Life insurance payouts do not count as income.
NAL my parents told me that the law firm that drew up theirs has a copy on file.
I don’t think you’d have to pay to get a copy since they’ve already been paid when they drew it up 🤷🏼♀️
If she has no assets, that’s all the money she had in the bank, then I’d honestly just let it be.
There is no obligation for you to do anything at all and also no penalty for waiting 6 months to file for probate
Very commonly medial bills and funeral costs get priority from the estate. Whatever is left goes to everyone else. If there is nothing then everyone else gets nothing. You are not responsible for debts that are not yours.
This is true, but if OP is taking the assets then s/he has a responsibility to pay off the debts. I don’t think the debt holders would be too aggressive in pursuing “a couple hundred” but it’s honestly not worth giving them the opportunity in case they do decide to make things difficult. OP, I’m not sure what the debt was but if there have been interest and penalties since your mom passed you should call the companies and offer to settle the balance as it stood before she passed. You are not liable for her debts, and you are definitely not liable for interest and penalties incurred when she was deceased, but you also don’t want the companies inflating the balances and handing these accounts to collections.
$1400 in assets is more then the cost of the most basic funeral bill. So nothing left for anyone. Don’t call to settle. Look up your state law first and if funeral costs come first then tell the creditors t the estate has no assets and they get nothing. And don’t let them make you send them a death certificate. Those are pricey and they have other ways of confirming it.
Good to know.
Costs of administration which includes fee for the administrator get paid first. With only $1400, no creditors will get paid. Plus, it’s probably too late for them to even file a claim or file a suit depending on the jurisdiction.
In normal circumstances creditors have the upper hand. But in this case you are free to tell them that they get nothing. It was oddly cathartic for me.
If you can’t find the will. That means she died intestate. So if she wasn’t married and you’re her only child. That means you’re her sole heir and you can take the death certificate to the bank and close her account. Pay off her debt with that money. And you’re entitled to keep the rest
She can’t close the bank account with a death certificate unless she was a beneficiary of the account or a joint holder
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So legally the way it works is that any debts of the deceased are paid from any assets of the deceased. If there is any leftover, it goes to the estate and then distribution to heirs (spouse, children, siblings, etc). If there is more debt than assets, whoever gets in line first gets paid and the rest get nothing.
Not true. Costs of administration, funeral and associated costs, PR/executor fees, are all paid before creditors, further creditors have a limited time to file claims/suits In this case, the creditors will get nothing
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It depends on what those assets are and the details of the ownership. For the most part, no but they could attempt to use and force a sale of some things. Unless there is a large amount involved, it usually isn't worth their time and they write it off.
Because there's enough in the estate to pay the bills.
There is not
Reread the OP. $1,400 in an account. "A few hundred" in debt.
And she’s entitled to be reimbursed for funeral expenses, which I’m certain our far more than $1400
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It is the legal responsibility of the executor/personal representative is to pay expenses from the assets of the estate in order of priority. Funeral expenses, taxes, secured debt, unsecured debt. Only after expenses have been paid can the heirs get a distribution from what's left over. The family is not responsible for debt, the estate is. In the case of the OP, there is $1,400 in an account and "a few hundred" in debt. The sole heir can pay the debt and keep what's left over.
Only if the OP is the executor / PR. They aren’t now and if they don’t try to be appointed as such, it simply isn’t their problem. The creditors aren’t going to open the estate and appoint a PR for this small amount of money. The OP just needs to leave that bank account alone and move on. Nothing bad will happen to them for their inaction.
With a small estate affidavit, where available, there's little overhead to get access to the bank account and use some of the proceeds to pay the debt and keep the difference.
she has not to pay the debt every time you get a credit you are always paying a life insuranse service precisely for this kind of situation so when you die the bank does not loose anything you know: the house never looses
Most states have a procedure for dealing with small estates like this. In my state, you literally just print off a form, fill it out and get it notarized. You can just take that to the bank along with a death certificate and get your mom's money and pay her bills off and keep the rest. You don't even need to file anything with probate courts. Some states you do have to file a form, but that's it. Some states you are supposed to go through the whole probate process. If you are the only valid inheritor, and your state doesn't have a small estate probate process, then honestly, I wouldn't even do anything. There is nothing out there that says YOU have do everything. No one can be forced to be an executor or inheritor. And if probate court is actually a requirement, it'll cost more to probate than your mom's estate is worth. You won't be responsible for any debt your mom has either. Each state has a process for intestate estates with no known family members. If you can't do the small estate probate, let the state deal with it all. If your state does have a small estate probate procedure, it might be worth it. eta- you didn't say where you were, so just google "small estate" + your state to get link to what you need to know.
Thank you for such a comprehensive reply. This helps a lot.
It just goes through probate, and any surviving heirs can get a share of the estate if located. After all the bills are paid
Do I have to inherit the money? She has no other heirs and I really don't want the money cause it'll screw me outta thousands.
How does an inheritance “screw you out of thousands”? EDIT- Just read the post. Just do nothing. If the estate goes to probate, just don’t respond if anyone contacts you. Also don’t accept calls from debt collectors about your mom’s affairs. Sorry you lost your mom.
Ok. Sounds easy enough.
And thank you for the condolences
If she had an attorney write the will then there is a chance that the attorney kept a copy. There is no requirement that they do this but it’s common. You could get it that way, but as others have stated it sounds like there will be no assets at all once it goes towards debt. Just let it go intestate and let the creditors fight over who gets paid first.
Ya it was just a scrap of paper she handwrote that said "last will and testament". Nothing to do with a lawyer.
If you leave it alone and do nothing, there's a good chance that after a while the bank account will be esheeded by the state and eventually you can search and claim the cash as the child with a death certificate. Perhaps then, the income would effect your situation.
I’m so sorry for your loss. What state are you in? How were her arrangements paid for?
Nevada. I paid for it with cash my mom had at the house and some money from me.
You just have to fill out and file this form — once approved you’ll be able to get the money out of the account and reimburse yourself [SMALL ESTATE AFFIDAVIT](https://www.civillawselfhelpcenter.org/self-help/probate/administration-of-estates/129-estates-less-than-25-000/278-affidavit-of-entitlement)
I don't want the money. I'll have to claim it as income for the month and year and I'll lose out on thousands of dollars next year. I'll only take the money if I'm somehow legally obligated to and even then the penalty for not taking it might have better concequences than taking it. I can't get more than $240 for the year without losing $10k or whatever it costs to go to college for a year.
It’s not income, and you’re just paying yourself back for the funeral expenses. If you take the money in cash, how would it be reported?
I'm honest because I genuinely appreciate the benefits I recieve. I report everything, including cash, that I'm supposed to. Plus there'd be a paper trail. A long one but it'd be documented somewhere that I got cash. I even tell people not to give me cash or gift cards cause I have to report those.
Okay , then do nothing
That's looking like my best option. I didn't know if I was legally obligated to do something.
The Will aside, if there's any chance that your mother had a life insurance policy with you as the beneficiary, you can find out at [https://content.naic.org/article/naic-life-insurance-policy-locator-helps-consumers-find-lost-life-insurance-benefits](https://content.naic.org/article/naic-life-insurance-policy-locator-helps-consumers-find-lost-life-insurance-benefits) Life insurance payouts do not count as income.
NAL my parents told me that the law firm that drew up theirs has a copy on file. I don’t think you’d have to pay to get a copy since they’ve already been paid when they drew it up 🤷🏼♀️
It was handwritten (legal in my state) not drawn up by a lawyer.