Estate and Probate

[rb4minus1]

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

My mother recently passed away in Minnesota. She had no will. She owned her home and car, and had about $3500 cash. 2 life insurance policies. One has myself as sole beneficiary, the other has my brother as sole beneficiary. She also has +/- $8000 in credit card debt. We understand the house and car need to go into probate due to no will. The lawyer in her small town though is also stating that both insurance checks need to also go into her estate - for probate. Why? When we are listed as sole beneficiaries, why wouldn't the credit card debt come out of the sale of her home?

 

[anteater]

The lawyer in her small town though is also stating that both insurance checks need to also go into her estate - for probate. Why?

That's the question that you should be asking the lawyer. Who is the lawyer representing?

Complete the claim, get the proceeds, and let the lawyer fuss.

 

[rb4minus1]

He's the ONLY attorney in my home town. He's doing the paperwork making my brother executor so he can start the sale process of the house, clean up utilities, etc.. My brother is paying him - more so, us kids.

 

[anteater]

He's doing the paperwork making my brother executor...

Well then, your brother should be asking the lawyer, "Why?"

In the meantime:

Complete the claim, get the proceeds, and let the lawyer fuss.

The only possible scenario I can think of in which the executor would need to get his hands on the life insurance proceeds is if the estate is subject to Minnesota estate tax. And that is real long shot. Including the proceeds from the policies, is your mother's estate likely to be valued at more than $1 million.

 

[rb4minus1]

No, the property is worth 60K +/-. Very little value. Insurance policies are only 4k and 8k. Oldest sibling is only one in town - he will be executor with all of our blessing. One beneficiary is him, the other me. I have mailed in the paperwork on the claim I am beneficiary, but was told the lawyer needs these checks endorsed and forwarded to him to go into the "estate". My brother is unclear of the reason too. As noted earlier, with no will, and 4 kids, I understand the home being put into the "estate"... But why the insurance when there were specific beneficiaries noted? We don't intend to keep these monies ourselves, there is a total of 4 children...

 

[anteater]

As a former First Lady urged, "Just say no!"

The attorney may simply be, uh, confused. Or, less charitably, if the attorney's fee arrangement is based on a percentage of the value of the estate, he may be trying to engage in some compensation inflation.