Legal Question in Wills and Trusts in Georgia
Both of my parents have passed away. I am the only heir and executrix of the estate. Very little life insurance was left behind and mounds of debts. The estate has two houses securing a commercial loan taken out to pay the IRS from previous debts. I do not want to sell the houses but pay the note owed on these instead. My question is how does state of Georgia look at creditors and their claims under Probate? Who would be top of the list for payment and who would loose out it the estate does not have enough money to satisfy these debts? Debtors include IRS, Commercial Bank Loan on the houses, credit cards, and back property taxes.
1 Answer from Attorneys
As a general rule secured creditors will come first, but one would have to search records to know what other creditors might have judgment or tax liens that also would have priority.
If the debts exceed the assets it was probably a huge mistake to probate the estate at all as you have a headache that will include legal fees. It might have been better to let the creditors duke it out and not do anything, as you as an heir come behind everyone. It is possible but not likely that you could reach an agreement with ALL the creditors that would allow you to do what you say, but if you settle with one and not another, you have probably violated your duty as executor and risk personal liability.
At this point get a lawyer. It's necessary.
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