Death and debt in NC?

[LSCAP]

What is the name of your state? NC

My friend’s father died a few years ago. His mother died last week. He just found out he, and a sister are named as executors of the estate.

Her debts were a couple of store credit cards. It amounted to only a few hundred, $160 in one and about $300 plus in a second. Her bank account only has about $250 in it.

He called pre-paid legal today and was told “ Just pay until the money runs out.”
Is that correct, and is that the end of it?

I don’t think she had any property, but what if she does? I only ask that because if she did, say a car or the house, and they sell these do they turn over the difference to stores involved?

I’m not sure about the pre paid legal. One of my co-workers asked Pre paid for help with a ticket and was told, the fine is xxx and court costs are xxx and my fee is xxxx.
He felt he didn’t need to pay a lawyer to plead guilty for him and he went to court pleaded guilty and paid the fine, and court costs. All the pre paid offered was a discount on his usual fee. Otherwise was uninterested.

[BelizeBreeze]

Originally Posted by LSCAP

What is the name of your state? NC

My friend’s father died a few years ago. His mother died last week. He just found out he, and a sister are named as executors of the estate.

Her debts were a couple of store credit cards. It amounted to only a few hundred, $160 in one and about $300 plus in a second. Her bank account only has about $250 in it.

He called pre-paid legal today and was told “ Just pay until the money runs out.”
Is that correct, and is that the end of it?

Small estate then yes. Have him contact the creditors and have them make a claim against the estate.

I don’t think she had any property, but what if she does? I only ask that because if she did, say a car or the house, and they sell these do they turn over the difference to stores involved?

Yep. Creditors of the estate get paid first and have up to a year to file a claim and be paid. Once all claims have been paid and/or the time limit has run, then the estate can be settled, with distribution of all remaining assets to the heirs.

I’m not sure about the pre paid legal. One of my co-workers asked Pre paid for help with a ticket and was told, the fine is xxx and court costs are xxx and my fee is xxxx.
He felt he didn’t need to pay a lawyer to plead guilty for him and he went to court pleaded guilty and paid the fine, and court costs. All the pre paid offered was a discount on his usual fee. Otherwise was uninterested.

Tell your friend to find out if mom had any property, how it was held and how the accounts are held. If the assets amount to more than a few thousand, then have him go to the county courthouse and inquire about opening a small probate for the estate.

Usually, such an estate is limited in the amount but is simplier to handle.

[collectone]

The previous information is very accurate and should be your friends guide to dealing with the estate. However, because of the small amounts in question, you may find that the creditors may write-off the debts rather than file a claim because it may be the most cost effective method of resolving the receivable, especially if its a large corporate creditor.

[LSCAP]

Thank you. Your advice is clear and helplful.

I really appreciate it.