Brothers death, no spouse ,kids,assets but debt

[lennitard]

What is the name of your state (only U.S. law)? New Jersey

Hi, My brother passed away in December. No will, wife,kids, real estate, vehicles; just what he had in his apartment. Has about 4000 in checking account plus 1200 in checks made out to his estate. From what I have been able to gather, his debt is around 8000 (5500 credit card debt at bank where checking account is, 1500 irs taxes from 2014 still owed plus 2015 income tax). He recently retired from a state job and left 40000 in pension and 275000 life insurance to my mom plus another 25000 to my dad in a retirement account. We are in the process of claiming the life insurance, pension, and retirement account.

I am leaning towards not doing anything through probate and just walking away. I guess my parents would be in line to be administrator but what's the point? There will be nothing left in the end. We're not going to find any money tucked away anywhere but there's a chance that more debt will surface. My parents will do what I decide. I really don't want them to deal with the process. I also don't want their name on any record with the courts as they are beneficiaries of a pretty large sum. I've heard that cant be touched but...

So, should I bother with Probate? Thanks

 

[Dandy Don]

Yes, you should. Someone has the legal obligation to pay off the debts of the decedent. If no one files, perhaps one of the creditors will file to open up probate if they happened to see the decedent's death notice.

 

[lennitard]

Yes, you should. Someone has the legal obligation to pay off the debts of the decedent. If no one files, perhaps one of the creditors will file to open up probate if they happened to see the decedent's death notice.

So other than the "legal obligation", I can't see any reason to put my parents through administrating this. I'm thinking no one is required by law to pay off the debts and if so, who is required?

 

[justalayman]

The "estate"'is require to pay the debts.

You listed $5200 in liquid assets that may be required to pay debts

I can't say the $25k retirement account and $40k aren't a a available as estate assets. I have no idea how they are structured or titled. Depending on various facts not known they may be considered estate assets.

 

[lennitard]

The "estate"'is require to pay the debts.

You listed $5200 in liquid assets that may be required to pay debts

I can't say the $25k retirement account and $40k aren't a a available as estate assets. I have no idea how they are structured or titled. Depending on various facts not known they may be considered estate assets.

My mother was named the beneficiary of the state pension and life insurance policy and my father the beneficiary of a separate retirement account.

 

[justalayman]

I'm not saying those accounts are estate assets or not. Merely saying make sure.

Additionally it appears New Jersey has both an inheritance tax as well as an estate tax. I don't know much about either in New Jersey. Simply noting their presence so anything that is subject to such taxes is dealt with properly.

 

[LdiJ]

I'm not saying those accounts are estate assets or not. Merely saying make sure.

Additionally it appears New Jersey has both an inheritance tax as well as an estate tax. I don't know much about either in New Jersey. Simply noting their presence so anything that is subject to such taxes is dealt with properly.

Thing that pass outside of the estate can never be estate assets. New Jersey inheritance tax does not apply to money left to a parent, grandparent, spouse or child therefore that would be irrelevant in this case.

 

[Dandy Don]

I meant to say a "moral" obligation, not a legal obligation. If you don't want to take the time to be administrator, then ask your parents to hire an attorney to do it.

 

[Mass_Shyster]

I meant to say a "moral" obligation, not a legal obligation. If you don't want to take the time to be administrator, then ask your parents to hire an attorney to do it.

Maybe the bank should hire an attorney to do it. They stand to gain the most.

 

[lennitard]

Thanks for all the input. Other than my "moral obligation", I'm still not seeing a good reason yet to go through probate.

 

[justalayman]

Where is the money in the checking account and the checks made out to the estate going?

 

[tranquility]

Thanks for all the input. Other than my "moral obligation", I'm still not seeing a good reason yet to go through probate.

If you are not trying to get (Or, took that cool ring, firearm, Nixon campaign button.) something without turning it over to the creditor, I agree. Let those who care, care.

 

[lennitard]

Where is the money in the checking account and the checks made out to the estate going?

If I do nothing:
The checks made out to the estate: The garbage I guess
The money in the account: I dunno, I guess it just sits there

 

[lennitard]

If you are not trying to get (Or, took that cool ring, firearm, Nixon campaign button.) something without turning it over to the creditor, I agree. Let those who care, care.

If I understand you correctly...
He did have some valuable guitars that are staying in the family to my youngest so a part of my brothers passion (for guitars) will live on. I'm going to donate or trash a lot of stuff. Really not too much as he lived in a tiny apartment for the past 20 years or so.

I can live with the above morally.
Legally I realize it's a bit iffy but not too much that's traceable IMHO..

 

[justalayman]

If I understand you correctly...
He did have some valuable guitars that are staying in the family to my youngest so a part of my brothers passion (for guitars) will live on. I'm going to donate or trash a lot of stuff. Really not too much as he lived in a tiny apartment for the past 20 years or so.

I can live with the above morally.
Legally I realize it's a bit iffy but not too much that's traceable IMHO..

There's nothing iffy about it. If you take anything from his estate it is theft. No questions about it.



Legally if you are not going to probate the estate you need to literally walk away from his apartment; take nothing and do nothing with his personal property. You have no legal right to.