My brother died with no will; I am handling his affairs. His property is well under $100,000. What do I do with monies coming in from Apartment cleaning deposit, employer payroll payout, etc. made out to his Estate? Will creditors be able to tap into those funds. We wanted to use monies to pay for his cremation.We are in California, there isn't any property, and the only money coming in amounts to a couple hundred dollars. There will be nothing once cremation is paid for. In fact, the cremation is $2100 so we are in the hole.
Creditors have a right to be paid. As far as an affidavit of small estate is concerned, you will need to affirm to the court that there are no creditors with claims. Creditors have superior claims in estates then heirs.
First, cremation and burial is a priority claim and can always be paid without concern. Remaining creditors should be paid prior to any distributions to heirs. You can always to negotiate with the creditors to reduce the debt but you should not distribute until you know all creditors have either written off the debt or have been paid.
I have attached a link that explains intestacy -- dying without a will -- in CA. If you need further assistance, it is recommended that you contact a local attorney.
Yes. Creditors of small estate entitled to be paid.
As personal administrator of estate you must collect assets owned by your brother, including cleaning deposit, wages owed.
Cremation and burial expenses are property expenses which will be paid before creditor's claims are satisfied.
Final disposition costs (including cremation / burial) as well as estate administration costs (including reasonable or statutory administrator / executor fees) are priority claims and generally are paid first. The remaining creditors are entitled to be paid before distributing to heirs.
By opening a probate you would put all creditors on notice and limit the creditor claim period down to 4 months. Otherwise their ability to collect could be up to 4 years for creditors such as credit cards (creditors with a written contract).
Further you can negotiate with the creditors to reduce the debt. If you don't ultimately settle the debts then you (and all other heirs that received assets from the estate) become liable for the debt due to the fact that you took estate assets without paying the creditors.
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