Legal Question in Wills and Trusts in California
estate disposition
When a family member dies and has bills, do the bills still need to be paid? My wife's mother left a small insurance policy ($4K) for her burial, another small federal life insurance policy to her 2 daughters ($6K each), and a club membership (consisting of a cabin on club land that she paid dues on, but no taxes) to one of her daughters. There was never any probate as she had no other assetts beyond the forementioned. She left a valid will, but all the will said was where the club membership and the insurance money went.
The bills consist of magazine subscriptions and a small credit card amount.
1 Answer from Attorneys
Re: estate disposition
The bills have to be paid from estate assets before any estate assets are distributed. The insurance policies are paid directly and are not part of the estate if the beneficiary designation was with the daughters. If the beneficiary was the estate, then it is part of the estate and a source for payment of the bills. The membership may have to be sold to pay the bills if it has a value before it can be distributed and a probate will be required.