Legal Question in Wills and Trusts in New York
How are my mother's debts paid (in order)?
My mother died without a will. I am the administrator. She had a mortgage and credit card debt. The liquid assets are not enough to pay for these. There are also lawyer's fees (not the right kind, apparently), and I paid for the funeral. May I pay the latter 2 expenses from the estate? I also paid 1 mortgage payment to avoid a 120 day lapse in payment. I plan to sell the house when the market improves, but I can get tenants to pay the mortgage until then. How do I handle the credit card companies? Thank you. I can't get anywhere with my mother's lawyer.
1 Answer from Attorneys
Re: How are my mother's debts paid (in order)?
Funeral expenses get paid before all other expenses. Estate Administration expenses ( including legal fees) get paid before debts. The credit cards companies must wait until the estate is fully liquidated so that the net estate can be calculated. If the estate is insolvent, the credit card companies get paid on a pro rata basis.
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