Legal Question in Wills and Trusts in Utah
exempt from debtors
are some items exempt from debt collectors?such as an automobile. Would an ex.of an estate be allowed to retain such property even if there were claims against the estate that exceeded the value of the assets? And ex.of estate is guardian of infant of the deceased whose estate is in probate?
1 Answer from Attorneys
Re: exempt from debtors
Debt collectors are limited by law in what they can take. First a collection agency has got to get a judgment. Then they have to execute on the judgment which is done by garnishing wages and/or bank accounts or siezing property and having it sold at a sheriff's sale. There are laws that limit what can be taken and how the money is divided. Example, if you are buying a car which could be sold at auction for $2000, but owe $1800 on the car, no collection agency is going to take the car. (Assuming that the lending bank is not the party attempting to repossess the car.) You may want to talk to an agency like Consumer Credit Counseling, they can help you sort out finances with little or no cost.
Your questions about an estate are unclear. An executor of an estate is responsible to gather the assets of a deceased, pay the deceased's bills and distribute the remaining money/property according to the will or the law. If the executory is also a guardian, the remaining property of the estate would probably be used to support the minor child.
If the estate is in probabe the court will over see distribution of assets. Debts come first, then the remainder according to either the will or, if no will, according to rules of intestate succession: 1/2 to a spouse, if any, 1/2 to surviving children.
Call if you have questions.