Legal Question in Wills and Trusts in Pennsylvania
Debts Exceed Estate Funds
Friend died in August 2006 & I'm executor & beneficiary of estate. He didn't own property or car & had nothing of value nor furniture except desk given to his son. He had $1,000 & debts of $3,500+ from last medical bills, utilities & credit cards. [County took care of burying body because children wouldn't give me their signatures in order to have body turned over to me & they wouldn't take care of it.] I paid to probate will, get death certificates & fee to church for memorial service, & made minimum payments on credit cards. (I'm an authorized user of cards but they aren't joint accounts). After these expenses, in what order should I pay bills? Do I pay bills in the order they arrived or do medical bills have to be paid first? Can I be reimbursed for cost of gas for errands & expenses for cleaning & hauling stuff from his apartment, stamps & envelopes for letters I've had to write, etc., or is that only if there is money left after the creditors are paid? [Is there a mileage rate?] I've been told that I get a fee for being executor. Is that true? Utilities said they will send acct for collection if it isn't paid this week. I have no income to pay for an attorney otherwise I would consult one. Where can I get more information?
1 Answer from Attorneys
Re: Debts Exceed Estate Funds
My condolences on your loss of your friend.
From what you describe, your friend's estate will be "insolvent", i.e., there isn't enough to pay all debts.
First, try to get help from your county Community Legal Services organization, which may provide assistance with probate for income-eligible people, or be able to refer you to some lawyers who will provide legal services without charging a fee.
PA law provides for the order of payment of debts.
If the estate may be insolvent, great caution should be exercised in payment of any claims. PEF Code �3392 sets forth certain preferences for charges and claims when the estate is insolvent. The order of preference is as follows, without priority as between claims of the same class: a. The costs of administration; b. The family exemption; c. the costs of funeral and burial, as well as the costs for those medicines, medical or nursing services, hospital services (including maintenance) and services performed by any employee of decedent which were provided within six (6) months of decedent�s death; d. Rents for occupancy of the decedent�s residence for six (6) months immediately prior to death; e. All other claims, including those by the Commonwealth. In addition, PEF Code �3392 recognizes possible priorities given to claims due as of the date of death to the United States.
You will find that the Register of Wills Office is helpful to people who are trying to probate wills on their own.
You may also get assistance in preparing the PA Inheritance Tax Return The Inheritance Tax office in your County will assist you.
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