Shields & Boris

Do You Know Your Role in Settling A Loved One’s Estate?

Did you know that if you are the personal representative of a deceased loved one, it is your responsibility to make sure that all creditors of your loved one’s estate are paid in the correct amounts?

These debts should have been discovered in the course of the initial steps in the estate administration. However, before any particular creditor is paid, you’ll need to make sure that the estate is solvent and that the debt is legitimate. If the estate is not solvent, i.e., there are insufficient assets to completely pay all of the creditors, then you may be personally responsible for those debts, if it’s determined that you distributed the assets improperly.

If an estate is insolvent, there is a particular order in which debts are to be paid. The order is established under the Probate Estates and Fiduciary Code, Section 3381. The right attorney can assist you in determining solvency of the estate and help you make decisions to avoid liability.