Legal Question in Wills and Trusts in New York

intestate. is probate filing necessary?

Sister lived/died in NY. No will. No property,no bank accts. Mother alive in a ''home''. Another sister is POA for mother. Does this make her administrator? Is it necessary to go thru probate. What would happen if filing is not done? She had 0 assets 'cept sml sum (less than $5,000)in a fund (with no beneficiaries indicated). Would this fund be transfr'd to Adminstrator and how? There are a few outstnading laons in which the sum of each one exceeds the amount in the fund. Deceased also owes mother money almost equal to fund. Your help is appreciated.


Asked on 1/17/05, 11:25 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: intestate. is probate filing necessary?

Administration is necessary to get the fund proceeds released, since there is no named beneficiary. Since the mother is incapacitated, the sister can be appointed. This should be treated as a small estate (under $10,000), at minimal probate cost. The sister may need to verify that the debts exceed the asset value, so no bond need be posted, as the estate is actually valueless. All this needs to be explained to the Surrogate when the administration is applied for. You cannot pick and chose which creditors are to be paid. If there are no liens or judgments, all creditors, including the mother, need to be treated equally. The sister should, after appointment, obtain the funds and apply the proceeds pro-rata to the debts. No distribution should be made unless and until all creditors approve the pro-rata offer of payment.

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Answered on 1/17/05, 1:36 pm


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