Probate law in california (creditors and assets upon death).

[mikeofaustin]

My father passed recently and was in debt. ALOT of debt. The public administrator told me about a CA law that states that even if someone is listed on the will, the creditors have to 'get their cut' before anyone on the will can be satified. AND, if the people in the will recieve the items listed in the will anyway (like they take the car anyway, for example), that the creditors can later go after that person that took the car.

Now, a little more depth... when I say 'the creditors get their cut', that means that IF, the public admistrators office take over the estate, and handle the debt by selling the estates assets (his car, his refrigerator, anything of value). Because, as of right now, I have not requested that they 'take over'. Nor, do I plan to go and sell his estate to satisfy his debts either. In fact, I'm assuming that the best thing to do, is to go in and grab the photo albums, and leave. Just walk out, leave the car in the garage, and not receive anything.... and never look back.

The only thing of potetial value is his vehicle. Nothing else of value exists. I'm not the intended recipient of the car, but, if that person does take it, what's the possibility of creditors knocking on his door?

Is 'walking away' and just leave the car in the garage the correct thing to do? or should I ask the Public Administrators office to 'take over' (they charge $1,200 for this service).

-Mike

 

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[mikeofaustin]

Another thought would be, if we have the public administrators office take over his estate, I wonder if they'll even let us into the house. I mean, if they do, perhaps they'll 'escort' us around, to make sure we don't take anything of value. This would be a problem for me, because I knew he was into model trains. I am too... and it would mean allot to me, to have some of his train equipment, but I'm assuming I can't have it because it has 'value'.

-Mike

 

[packerbacker]

Unless it is listed as an "Asset" with probate, who would know it was there in the first place? With a car, for example, someone would have to show proof that the car was legally theirs before it could be registered in their name. Model trains, heirloom silver, furniture, coin collections etc. do not have to be registered. Get what you want and deserve and leave what you don't want for the vultures. Was anyone named "Executer"? Split whatever items you can split without need of arbitration and let the executer deal with the rest. Sorry for your loss. I'm sure your Dad would rather you get his stuff if you want it.

 

[mikeofaustin]

Unless it is listed as an "Asset" with probate, who would know it was there in the first place? With a car, for example, someone would have to show proof that the car was legally theirs before it could be registered in their name. Model trains, heirloom silver, furniture, coin collections etc. do not have to be registered. Get what you want and deserve and leave what you don't want for the vultures. Was anyone named "Executer"? Split whatever items you can split without need of arbitration and let the executer deal with the rest. Sorry for your loss. I'm sure your Dad would rather you get his stuff if you want it.

No one was named 'executor'. But the title is mine, if I wish to ALSO settle his debts. In which case, correctly if I'm wrong, but as I understand it, if I don't settle everything properly, and 'miss anyone', then I could be held liable for the miss-distributed debt. SO, knowing this, I thing it's best if I tell them right away, I'm letting them deal with it. And, telling them this, I was told, it was most likely an escorted tour through the house, just so we don't take anything of value.

So, if there is a 'coin collection', I just hope they don't see me grabbing it and they say "Hold on there cowboy".

-Mike

 

[stefen]

Here is what I know about California law having settled my families estate a while back...

The State of California sets the limits of what a Probate Attorney can charge, and my attorney's fee was a maximum of 2% of the settled estate....in the end he was a great help and ran interferance with all creditors, accountants, IRS and so on.

The executor (or the attorney) must advertise in a local paper that an estate is being settled...I beleive for 30 days...this is a legal tool and offers legal protection to the estate and executor.

Obvious creditors will be for hospital, medical and Funeral expenses....anybody else will surface when the AD hits the street.

The executor should search the premises for all outstanding bills, bank records, insurance policies, and Federal.

In the end, all heirs are most likely entitled to family pictures, books and momento's.

A filing must be made to the State and IRS, and all other cash and liquidable assets will be distributed by the courts. Debtors entitled payment may get pennies on the dollar...but they are first in line...whatevers left is distributed to the heirs.

Nobody has the right to sweep in and abscond with real assets.

You may find that many of the debts will be paid by insurance. There may be a retirement fund or death benefits available.

Each year, its important to check the California Treasurer's office to see if property has been turned in as presribed by law. For example, after a specified time, banks are required to report accounts and contents of boxes. By the way, a week or so ago, I checked my name and found close to $566 dollars owed by an Title / Escrow Company.

We had similar thoughts as to my parents estate and found 5 properties, 2 insurance policies and 16 bank accounts that was the foundation of the estate...

Neither you or any heirs can be held personally or legally responsible for the debts of the estate.

Good luck.

 

[mikeofaustin]

Neither you or any heirs can be held personally or legally responsible for the debts of the estate.

Unless, of course, if I step in as administrator, and do not settle the debtors claims properly............ I'm learning this part, more and more. That's why I'm just going to turn it all over to the state. I was hoping to dig through the property inside the house for any small nick-nacks, but apparently, anything of real value, can't be taken.

 

[aa battery]

went through this 3 years ago get an attorney

 

[stefen]

Neither you or any heirs can be held personally or legally responsible for the debts of the estate.

Unless, of course, if I step in as administrator, and do not settle the debtors claims properly............ I'm learning this part, more and more. That's why I'm just going to turn it all over to the state. I was hoping to dig through the property inside the house for any small nick-nacks, but apparently, anything of real value, can't be taken.

Sounds like you have been totally missinformed...

Retain an attorney that specializes in estate probates...he will lead you thru the mess...and he must prepare doc's for the court...

If he screws up, you cannot be held liable...

Whatever, its not recommended to attempt this solo...or to walk away

 

[Arizona Bob]

Mike-

I've been thru this situation twice (in CA). Not all situations are exactly the same, but in CA they are generally the same.
With granny, no attorney was used. With an uncle, a probate atty was a lot of help. The laws seemed fairly complicated to me, but I did learn of some exceptions.

If your relative gave you (let's say) his coin collection while he was still alive, it's all yours. So you walk thru the house and then walk-away. When you get back home, you can admire all the gifts your relative gave you while he was still alive!

Bob