How do probate attorney fees get paid and any creditors that may come forward if an estate has no liquid assets to pay them?
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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 9 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.
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