Legal Question in Wills and Trusts in Pennsylvania
My father had a business which was sold upon his death. In the will it stated that the money from this sale of the business would be divided by among five people. My question is does the money from the sale of this building have to go into the estate in order to pay for any debt before it will be divided among the five people? I am told that the money from the sale of the business will not be used to cover any debt and that other properties that were willed to me will have to be sold in order to cover that debt; is this correct? Or should the funds from the sale of the business be used and whatever is left over after the debt has been met be divided then?
1 Answer from Attorneys
I don't know what you were "told" or by whom or the context of the conversation. I know that family or friends or others may mean well, but just because something happened to them does not mean that it applies in your case. So do not go by what you were told unless it was an attorney who has reviewed all of the estate documents. I also don't want to be in the position of second guessing an attorney who has reviewed the documents and would be familiar with the case - he or she has reviewed the matter, whereas I only have the information provided in your post.
I would have to see the will, but the bottom line is that the heirs cannot keep the properties or proceeds from the sale and NOT pay the valid debts of the estate.
The personal representative and the estate attorney, if any, will have to work to discover what assets and debts there are. If there is enough money, all the debts/claims are paid and whatever is left is given to the heirs as per the will. If there is not enough money, then claims are paid out in order of priority. Also, gifts are rescinded in a specific order, with funds from the residuary estate used first, then monetary bequests and then personal property. So I would need to not only see the will but know about the debts/claims against the estate as well as the estate assets in order to know for certain.
I also don't know where the estate is probated. If you are on speaking terms with the personal representative, you may wish to ask him or her. If there is an acrimonious relationship, then get a copy of the will. Wills are public records and can be accessed by anyone. If you are still unclear after reading the will, then get a probate attorney in the county/state where the will is probated to read the will and better advise you.