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The estate pays all debts first and then distributes the assets.
So yes they can.
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∙ 14y ago
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What is the easiest way to settle a parent's estate in Illinois if they had more debts than assets?
Probate is the easiest way and the legal way it should go when a Will is left. Probate makes sure that all creditors (banks, charge cards, loans, property taxes and personal taxes, etc.) are paid in full. Whatever is left after the creditors is paid goes to the Heirs in the Will. If there is no money left and debt still owing then the creditors are out of luck and the Heirs are not liable for any monies owing. Marcy
Is the executor respondsible for debt when there is no money left in the estate?
No. The estate is responsible for the decedent's debts.However, debts must be paid before any property can be distributed. If there isn't enough money in the estate the debts must be paid in the proper order which is set by law in each state. The court appointed executor IS responsible for following the law in the settling of an estate.If there are debts and no estate the estate is declared to be insolvent and the creditors are out of luck.
What does estate of the deceased mean?
The 'estate of the deceased' refers to all the property, real or personal, a person owned in their own name at the time of their death. That property is said to be their 'estate'. If the person left a will they are said to have died testate and their property will pass to their heirs according to the provisions of their will. If they had no will their estate will be considered to be an intestate estate and will pass to their next-of-kin according to the state laws of intestacy. An estate must be probated whether a person dies testate or intestate. As part of the probate process a notice is published that gives any creditors of the decedent an opportunity to file a claim. The debts of the decedent must be paid before any of their estate is distributed to the heirs.
Who is responsible for any balance if the bank repossessed your father's car after his death?
If your father left a Will, and he had an Estate (house, condo, property, etc.) then the Will goes to Probate and Probate makes sure all taxes on property, also personal outstanding taxes are paid off. It also pays off all creditors. For example: If your father left a Will and he owned a home, or had money in a couple of accounts the Probate would take that money and pay off all creditors (including the bank for the car) and any other debts. Only after this, do you get what is left in the Estate. I do believe the bank had no right to repossess the car after your father's death, but complied with Probate. I would seek legal help on this one.
If you are the son and executor of your parents' estate can the mortgage lender force the sale of the real property after finding out your parents are deceased being the original borrowers on note?
No! That's what a Probate is. Usually lawyers will do the leg work for Probate and this means they will be sure all titles are clear on homes(s) or properties. They also make sure all creditors are paid off and this includes property/personal taxes. mortgages and loans. Because of Probate the mortgage lender would be paid out of the Estate and the residue of that Estate would be left to the Heirs. Marcy
What happens when your parents are deceased and there is no money left in the estate to pay for medical bills?
If there is any other property such as real estate then it must be sold to pay the debts. If there are no assets the estate will be deemed insolvent by the court and the creditors are out of luck.
When a parent dies are the children held responsible for any debt left?
The parent's estate is responsible for their debts. If there is no estate the creditors are out of luck. However, if the parent left any assets, the estate must be probated in order to give creditors an opportunity to file a claim.
What do you do with deceaseds bills?
They are the responsibility of the estate. They are either paid or the creditors are left without payment.
Is it legal to take property from an estate before the will has been read?
No, it is not legal! Even if you know for sure you own that property upon the death of the person you must abide by the law and go through the legal procedures. All creditors (including personal/property taxes) must be paid in full and what is left over in the Estate is divided amongst Heirs according to that Will.
Do you pay estate taxes on property left to you?
Generally the taxes are paid by the estate.
Is a daughter still at college responsible for her fathers debts after his death even though he left no money?
The estate is responsible for the debts of the decedent. If there is no estate the creditors are out of luck.
If you die without any estate do your debts die with you?
Generally, yes. If the decedent left no assets their creditors are out of luck.
What is the easiest way to settle a parent's estate in Illinois if they had more debts than assets?
Probate is the easiest way and the legal way it should go when a Will is left. Probate makes sure that all creditors (banks, charge cards, loans, property taxes and personal taxes, etc.) are paid in full. Whatever is left after the creditors is paid goes to the Heirs in the Will. If there is no money left and debt still owing then the creditors are out of luck and the Heirs are not liable for any monies owing. Marcy
Is the executor respondsible for debt when there is no money left in the estate?
No. The estate is responsible for the decedent's debts.However, debts must be paid before any property can be distributed. If there isn't enough money in the estate the debts must be paid in the proper order which is set by law in each state. The court appointed executor IS responsible for following the law in the settling of an estate.If there are debts and no estate the estate is declared to be insolvent and the creditors are out of luck.
Your dad died without a will if you get the money out of his checking account can creditors come after you for those funds?
Your father's creditors should be paid from his estate. His bank account is part of his estate. According to law the creditors get paid first. If a creditor should discover that you spent assets left by the deceased they could seek a judgment against you.
What does estate of the deceased mean?
The 'estate of the deceased' refers to all the property, real or personal, a person owned in their own name at the time of their death. That property is said to be their 'estate'. If the person left a will they are said to have died testate and their property will pass to their heirs according to the provisions of their will. If they had no will their estate will be considered to be an intestate estate and will pass to their next-of-kin according to the state laws of intestacy. An estate must be probated whether a person dies testate or intestate. As part of the probate process a notice is published that gives any creditors of the decedent an opportunity to file a claim. The debts of the decedent must be paid before any of their estate is distributed to the heirs.
What do I do when my mom has died without money or a will but with a lot of debt?
If your mother died intestate (without a will) and she owned any property when she died her estate must be probated. Title to real property cannot pass to the heirs unless the estate is probated. The debts of the estate must be paid before any property can be distributed to the heirs at law. If your mother left no property in her name then her creditors are out of luck. You should seek the advice of an attorney who can review your situation and explain your obligations, if any. Until you speak with the attorney you can notify any creditors of her death but do not pay any bills until you have had the benefit of legal advice.
