Legal Question in Wills and Trusts in Georgia
My mother passed away in Georgia without a will. I am the sole heir and only decendant. I have already obtained the administrix/exeutor papers but I am unsure if I need to open an estate account or not. She has under $100 in her bank account and her assets could be considered my grandmothers who has also passed away.
My grandmother died about three years ago, my mother filed a deed change into her name two years ago after finishing her affairs. The lawyer actualy put my mothers name on someone elses deed and so the house still remains in my grandparents name. So I don't know if the house is technicaly hers or not, she was the exeutor of their estate. Other than the house her only other asset was her car which I have paid off with my own money.
My mothers debt is possibly greater than the value of the house anyway, primarily consisting of medical bills and credit card bills. She had no life insurance or any other assets. So since these are unsecured debts am I or is the estate responsible to pay them off? If I do not pay them, as I have no means in which to pay, would they be able to put a lein on the property? Should I open an estate account if there is no way to pay the debts off? What should I do about the deed?
3 Answers from Attorneys
This forum makes it difficult for an attorney to give you accurate answers due to the inability to review documents or obtain other needed information. Due to the number of issues that you have, it would be wise to enlist/retain the assistance of an attorney.
From your post, I assume that your mother died after your grandmother. The way property will pass is that your mother would have inherited her share of your grandmother's property. I don't know what you mean when you say that your mother's assets could be considered as belonging to your grandmother. That is not right if your grandmother died first.
When your mother died, her assets would have passed to you, including anything that was owed to your mother from your grandmother's estate. If the lawyer screwed up on the deed, then you still get your mother's share of your grandmother's property (I don't know if there are any other heirs).
If there is land and debts, you probably will have to open an estate and get the letters of administration. Once you do, you can collect the money from the bank and open up an estate account and deposit the money in the new account. You will have to get the property and probably sell it to pay the bills. If there still is not enough money, then claims are paid in order of priority as per state law. Medical debts incurred within the last 6-12 months of death get paid before credit cards. Since you paid off the car (I don't know why you would do this), you may have a claim against the estate for reimbursement. Or, depending on what the car is worth, you may be able to treat this as a "sale" of the car to you. If the car was worth more than you paid, then sell the car or else you will have to put more cash into the estate.
The bottom line is that you cannot keep your mother's valuables and NOT pay her bills.
However, you are not liable personally for your mother's debts.
Since you have a lot going on, the best thing you can do is go and see a probate attorney in the county where your mother lived at the time of her death.
You did things backwards and that may have been a huge mistake. Before starting a probate you needed to have a lawyer decide IF you should file. If the debts exceed the assets, the answer is no, as creditors are paid before heirs. Get a lawyer now and see if it was a mistake to file, or if it was appropriate, what you need to do to proceed. Paying off the car out of your money also may have been a major mistake.
It sounds like your mother died after your grandmother. That presumably means your mother inherited that property. So I think you may be confused on that account also.
In any event, get a lawyer ASAP to sort things out.