Intestate small estate in a DIFFERENT state!

[Confusedsibling]

The decedent, my brother, lived and died in Minnesota.
My father, also a Minnesota resident, died in February. He had a small company (~$80K in annual sales, out of which suppliers & shippers were paid) whose majority shares he left to my brother. Shortly thereafter, my brother was a passenger in a fatal accident.
My brother was living in an apartment with his domestic partner (killed with him) and had minimal other assets--no car or other real estate, no stocks, no IRA, etc. Immediately after his death, our first concern was simply clearing the apartment so that the rental company could prepare it for new occupants. It didn't occur to me that his situation might be complicated enough to warrant any legal activity on my part: anything we deemed of sentimental value to his minor son, his only other heir, we saved. The rest we distributed as we could (thrift store, etc).
I went back home (different state), but Dad's widow in Minnesota recently received a letter from Asset Acceptance requesting contact from a representative of my brother's estate. I now realize that someone will likely have to respond to this and potentially other creditors.
Can I use an affidavit for collection of personal property to request my brother's credit report to attempt to identify creditors? We found no will in the apartment, and my brother had only a few hundred in his checking account and no other bank account that I'm aware of.
Our greatest fear is that creditors may demand assets of the company. My brother owed A LOT in child support. Is it possible that that debt might take precedence over other creditors (as yet unidentified)? We'd like the company preserved for his son.

 

[OHRoadwarrior]

If dad died first and your brother should inherit part of the company, his creditors, including his ex, on behalf of his children are entitled to those assets to satisfy claims. Until dads estate is probated, your brothers cannot fully be. No one here will advise you to defraud his children or creditors.

 

[LdiJ]

If dad died first and your brother should inherit part of the company, his creditors, including his ex, on behalf of his children are entitled to those assets to satisfy claims. Until dads estate is probated, your brothers cannot fully be. No one here will advise you to defraud his children or creditors.

While I don't disagree with this, the company sounds like the kind of company that might not be of any value to a creditor. With only 80k in annual sales, and from the description of the expenses, it doesn't sound like it would be a bricks and mortar type of operation that would have actual assets or stored inventory. I am guessing that its an internet based business that only has value to the person actually running the business. That also makes it difficult to preserve it for the next generation unless the next generation is also old enough to run the business and wants to do so.

 

[Confusedsibling]

With only 80k in annual sales, and from the description of the expenses, it doesn't sound like it would be a bricks and mortar type of operation that would have actual assets or stored inventory . . . . Its an internet based business that only has value to the person actually running the business.

Pretty accurate.
OHRoadwarrior, it sounds like you're saying my brother's estate (what there is of it) will also have to go through probate? Any advice re identifying/dealing with creditors? Right now, I have no guess how much my brother owed or to whom. I doubt he'd held a credit card for at least the past couple of years. My perception of Asset Acceptance is that they're a step or two away from primary creditors--that is, when X Company can't get payment, they sell off debt to a collection outfit. My hope is that at least some of that debt is outside statute of limitations.

 

[LdiJ]

Pretty accurate.
OHRoadwarrior, it sounds like you're saying my brother's estate (what there is of it) will also have to go through probate? Any advice re identifying/dealing with creditors? Right now, I have no guess how much my brother owed or to whom. I doubt he'd held a credit card for at least the past couple of years. My perception of Asset Acceptance is that they're a step or two away from primary creditors--that is, when X Company can't get payment, they sell off debt to a collection outfit. My hope is that at least some of that debt is outside statute of limitations.

Again, whether or not you need to probate your brother's estate is going to boil down to the business and whether or not its possible for the business to be taken over without going through probate, and how the business would be valued, if it could be valued. Other than the business, its sounds like your brother's assets consisted of household goods and a few hundred in a bank account. Probate is somewhat expensive and it wouldn't be worth it (for his heirs or the creditors) to force probate over household goods and a couple hundred in the bank.

If the estate does go through probate, then the first creditor in line would be the IRS and the state taxing authority...as the estate would be required to file a final federal and state tax return for your brother.

 

[Confusedsibling]

Thanks for that information, and for taking the time to respond, LdiJ and OHRoadwarrior.