When the estate does not have sufficient fund to pay all, should it pay in the same discount to satisfy all parties?
An estate is insolvent if, at fair valuations, the sum of the estate’s debts is greater than all of the estate’s assets (Cal Civil 3439.02).
1.Priority of payment of creditor claims. PC 11420 sets forth the order of payment of the decedent’s debts, expenses of administration and charges against the estate. If the estate is insolvent and there are insufficient assets to pay general debts, it may be necessary for the PR to pay a portion of each general debt, pro rata. PC 11420 provides:
(a) Debts shall be paid in the following order of priority among classes of debts, except that debts owed to the United Statesor to this state that have preference under the laws of the United Statesor of this state shall be given the preference required by such laws:
(1) Expenses of administration. With respect to obligations secured by mortgage, deed of trust, or other lien, including, but not limited to, a judgment lien, only those expenses of administration incurred that are reasonably related to the administration of that property by which obligations are secured shall be given priority over these obligations.
(2) Obligations secured by a mortgage, deed of trust, or other lien, including, but not limited to, a judgment lien, in the order of their priority, so far as they may be paid out of the proceeds of the property subject to the lien. If the proceeds are insufficient, the part of the obligation remaining unsatisfied shall be classed with general debts.
(3) Funeral expenses.
(4) Expenses of last illness.
(5) Family allowance.
(6) Wage claims.
(7) General debts, including judgments not secured by a lien and all other debts not included in a prior class.
(b) Except as otherwise provided by statute, the debts of each class are without preference or priority one over another. No debt of any class may be paid until all those of prior classes are paid in full. If property in the estate is insufficient to pay all debts of any class in full, each debt in that class shall be paid a proportionate share
They start to mature in 2014 and go through 2022. My sister and I were told if we have them transferred/reissued in our name now, we would have to pay interest now up to Dad's death. We would rather wait to claim the interest when they are matured.
What is your concern? Is there a probate on other assets?See question
I have an irrevocable trust that was made in NY but I may go into a NJ nursing home. Will my assets be protected from Medicaid?
Have doc. reviewed by NJ attorney.See question
My dad died on June 4,2011 in SC, leaving an estate worth approx. $580,000 (this includes all assets and real property). I assume that the PR must have my dad's income tax state and federal returns (for income my dad earned from 1/1/11-6/4/11)file...
Call a CPA - you should have one handle this not an attorney board. Don't do this yourself - call the accountant.See question
I have an irrevocable asset trust made in NY but I may end up in a nursing home in PA. The lawyer said he did not know if it would still protect my assets from Medicaid in PA.
Contact PA attorney on Avvo practicing in this area for a consult. Would need to review the document!See question
My Dad died in Dec 2011. He had an AB trust. The estate tax exemption is 5 million. If he only has 2.5 million can you put it all in either A or B or does it have to be split. He has 1.7 million for house (not selling house) and 1 million in Bank...
Assume its all community property?
Trust needs to be reviewed to confirm if it says Aggregate method of allocation (not item by item) of communtiy property.See question
portion of his checking account and that NYS would get the remainder. He had been ill and hospitalized for several months but insurance covered most of that time and his sister will be paying the remainder. Unfortunately, he did not have a will. I...
Something is missing here in your fact.
No state just "takes the money" for no reason at all!
Was a debt owned? Taxes? Medicaid? What was it? Please post.See question
The person left no will but has children. The morgage on the property is not being held by a bank.
Creditors can get a lien on the Decedent's interest, not the third party.
Get counsel - many great counsel on Avvo are on NJ
the trustees are not a part of my life and i cant find them to inquire.
Why do you think you have a Trust Fund?
If you know the names of the Trustees - then call them. Its easy - google/linked in/facebook/or PI.See question
I just received the final distribution of my father's estate but it was much less than I thought it was going to be. I SIGNED A WAIVER OF ACCOUNTING. CAN I DO ANYTHING TO SEE HOW THE NUMBERS WERE CRUNCHED? Can I sue? where do I begin? ok...The ...
Consult with local counsel immediately.See question