Legal Question in Wills and Trusts in New York

Re: Distribution of assets

Funeral costs and costs of administering the estate, and that includes the commission payable to the administrator, have priority. Thereafter, debts secured by collateral are paid to the extent of the collateral and then unsecured debts are paid pro rata.

Re: Distribution of assets

The personal representative of the estate, your mom, should hire a lawyer to assist, who can be paid from the estate. The questions have to be answered based upon specifics, and then submitted to the court for approval before any payments are made.

Re: Distribution of assets

I agree with Norman that funeral and administration expenses have priority over non-recorded liens (mortgages, judgments, etc.) of general creditors. Since the estate has a shortfall, if there are any funds remaining, all general creditors are treated equally, and none can paid in full, as this is a priority payment and can be contested. The personal debt to your Mom is a general claim, just like the credit cards. I suggest you see what is remaining and contact all general creditors, explain the shortfall and offer to pay everyone, pro rata, to their dents. In most instances, this will be approved by all general creditors. Explain that if anyone contests, the matter will go to the Court and the extra fees, including the attorney you should retain, will just reduce, if not eliminate, any payment.