Legal Question in Wills and Trusts in Massachusetts
My mother passed last September and my sister and I are trying to take care of the estate but have extremely limited resources and even less knowledge about the process. We did contact the lawyer that drew up Mum's will, thinking he would guide us, but the steps he has told us need to take place will cost more than we can afford.
According to him, the estate is insolvent; however the only thing making the estate insolvent that I can see is the house--it is upside-down. Other than that, there is enough money in Mum's bank account to pay the other creditors. Does the house make it insolvent still? Can we choose to just walk away and if not, how are we expected to manage the costs? It doesn't seem fair for us to be left with this mess.
2 Answers from Attorneys
If you file as an insolvent estate and get appointed as Personal Representative, that is the first step. Once you are appointed contact the banks that hold the mortgage or mortgages and inform them the estate is insolvent and suggest they foreclose or take a deed in lieu.
As to the other creditors depending upon who they are I would write letters informing them that the estate is insolvent with debts in excess of assets and make an offer of compromise to each creditor.
Good Luck
Please accept my condolences.
You should retain a probate administration attorney, one who represents fiduciaries people like you and your sister in carrying out their duties of administering an estate. The first thing you need to do is become appointed personal representative by the probate court. That will give you the ability to act on your mother's behalf and settle some of those debts and deal with the home. You may want to have a second-opinion consultation with our estate administration attorney to see what can and should be done. Best wishes.
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