Tuesday, August 6, 2013

Jill's Money Problem

Jill lost her father to a fatal car accident about one month ago.  Now she has had time to look through all her dad’s papers and discover a distressing fact:  Her father did not have enough money to pay all the money he owed.

Jill was named executor under her dad’s Will but wonders how to proceed when she can’t pay off his bills.  In particular, she is worried about her younger sister, Pam, who is only 16.  How will Pam be supported, especially in this first year?

Jill can find a partial solution for her sister through probate.  Jill’s dad’s estate is called an “insolvent estate,” because his debts and the costs of his burial are more than his assets.  Probate specifically deals with what kinds of bills get paid first, second and so on.

In a way, when you have an insolvent estate, probate acts like a bankruptcy.  There are seven “classes” of claims.  These claims must be paid before anyone else receives any amount Jill’s father said they would get in his Will. 

For advice about administering the estate of any of your loved ones using probate or not, please call our office at (815) 436-1996 for an appointment to review the situation.  ©2013 Gruber Law Office, Ltd.


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