How do probate attorney fees get paid and any creditors that may come forward if an estate has no liquid assets to pay them?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How do probate attorney fees get paid and any creditors that may come forward if an estate has no liquid assets to pay them?
The house is the only asset; the approximate value is $300K (There are no other funds to be distributed). The house has a reverse mortgage; after paying off the bank there will remain about 150K of equity. Will the court order the house to be sold if no monies.
Asked on December 22, 2014 under Estate Planning, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
I am so sorry for your loss. You have a lot of issues going on here but nothing that isn't manageable. A lot will depend on if there is a Will and how the house was held. Generally speaking though the house needs to be "sold" in order to pay off the reverse mortgage and the creditors. It can be purchased by a family member that qualifies for a new mortgage and that would have be negotiated. Some times the person who inherits can negotiate the reverse mortgage as well. The house needs to be "sold" at the fair market value so as not to defraud the creditors. If there are no family takers of the house then the executor makes the decision to sell it on the open market. Your attorney should be helping with this. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.