Clutchfans, Need some help here. A buddy of mine recently had his mother pass away. There was a will. However, apparently, they are not allowed to file the will with the courthouse until her debts are paid, so they're trying to get her two sons to pay outstanding debts totaling $8K before they'll execute her will. Is this legit? I've never heard of the debts of the deceased being passed on to her next of kin. Does anybody have any advice on this? I was thinking they could just wait on executing the Will until her creditors realize that she's deceased. Of course, I don't have all of the details, but this doesn't seem right.
I thought everything except credit card debt was passed on. My older brother had us name him the executor on our Dad's estate, no will and the only asset was the house. There was $100k or so left after selling and settling with all the creditors; he was trying to be a professional actor in Austin at the time so he just didn't tell us, cut off his cell phone for two years and burned through the money. Estate lawyer couldn't talk to me or my younger brother because of attorney/client privilege.
It's not legit, and sounds like creditors just doing everything they can to get their debt paid off. I believe there is an "order of payments" if you will associate with an estate. #1 = administration costs (funeral home, etc.), #2 = debts like mortgages, etc. #3 = credit card debt, past due bills. Then remainder to beneficiaries of the will. In any event, it should all flow through the estate. Caveat... I'm no lawyer.
