probate distribution

[screwed]

We are in the middle of probating my mothers estate in Minnesota. All three heirs owe the estate money, either from loans or real estate. I have been told that how you figure out your distributions is that you take all the money all the heirs owe, total it up, and then divide it by three. Example: #1 owes 100,000--#2 owes 10,000--#3 owes 125,000, giving you a total of 235,000. Divide that number by three, so each heir would receive approximately $78,000. Our P>R> says you would take the largest amount owed which is 125,000, so then #1 would receive 25,000, #2 would receive 115,000 so everyone would start out equal, and then if there was any money remaining, that would be split three ways. Please help ASAP since this has been going on for almost a year. Thanks!!!!

 

[lwpat]

The PR must be #2. Everybody needs to pay what they owe to the estate and then it is divided out in accordance with each ones share after all the bills are paid.

 

[BelizeBreeze]

What proof of these loans do you or the Executor have?

 

[pojo2]

Are these loans of the heirs the only assets of the estate?

Seems to me if everyone is going to end up with 78K that 1 & 3 are going to have to come up with some cash to make the distriibutions possible. In otherwords unless the debts are settled up there is nothing to be distributed.

1. 22K (100k owed to the estate minus 78k his or her share)
2. 68K (RECEIVES from the estate)78K minus 10K debt
3. 47K (owed to the estate 125K minus their share of 78K)

This is without regards to other assets that might change the oweds and the payouts.

 

[screwed]

pojo2

Yes, there are other assets to be distributed after the debts are paid. The only debts still owed out of the estate are from the heirs. The money owed to the estate that I feel should be put in the middle and divided by three would basically be on paper to begin with. The money that is owed from #1 is from me. My mother was very ill for two years, suffering from Alzeimers desease. I quit my job to take care of her, but had to sell my house and move to a one level townhouse that would be safe for her. I did not make enough from the sale of my house to pay for the new townhouse, so I had to borrow the money to make up the difference. So basically, the money I owe is in real estate, but has to be paid back to get the house in my name. The money owed by #2 was for miscellaneous loans, and the money owed by #3 was for loans also. #3 is the PR, and I'm afraid of # 2getting screwed by his way of figuring. Everyone I know says you put the money that's owed in the middle because it should be handled just like it was in there to begin with since it started out as my mothers money. what a mess!!

 

[screwed]

BelizeBreeze

The proof of these loans is that I am #1. I quit my job to take care of my mom with Alzeimers desease, but in order to do so, I had to move to a one level house. I did not make enough out of the sale of my house to pay for the new one, so I had to borrow the money from my Mom to move. The PR is number 2, and there are bank statements showing the money borrowed, and #3 had loan papers drawn up.

 

[screwed]

Iwpat

Thanks for your reply, that's the way I thought it should be too.

 

[screwed]

pojo2

Yes, there are other assets to be distributed after the debts are paid. The only debts still owed out of the estate are from the heirs. The money owed to the estate that I feel should be put in the middle and divided by three would basically be on paper to begin with. The money that is owed from #1 is from me. My mother was very ill for two years, suffering from Alzeimers desease. I quit my job to take care of her, but had to sell my house and move to a one level townhouse that would be safe for her. I did not make enough from the sale of my house to pay for the new townhouse, so I had to borrow the money to make up the difference. So basically, the money I owe is in real estate, but has to be paid back to get the house in my name. The money owed by #2 was for miscellaneous loans, and the money owed by #3 was for loans also. #3 is the PR, and I'm afraid of # 2getting screwed by his way of figuring. Everyone I know says you put the money that's owed in the middle because it should be handled just like it was in there to begin with since it started out as my mothers money. what a mess!!

 

[pojo2]

Where is the Atty who is handling all this "stuff" for the estate?

To settle this part of the estate if it can even be solved is for someone to put some money in the coffers so the others CAN get their share unless ya'll are going to settle all these shortages with funds from the rest of the distribution.

Go see an Atty.

 

[screwed]

I posted a reply last night but for some reason it didn't show up today. Oh well, I'll try again. The PR for the estate (my brother) is also the attorney for the estate. That's why I'm trying to find out the proper way of distributing the assets. Yes, there is additional money in the estate, so if we put the money we owe in the middle, it would all just be on paper until we could take the remainder and figure it out. I'm just concerned because the way he is talking about figuring it out would basically screw my other brother out of some of his share, yet in the long run, put more money in his own pocket. I've been told that the money we all owe is realistically a third ours stilll, but he doesn't believe that's the way it should be. I just thought that legally there must be a calculation that attorneys depend on to split up the assets when the heirs owe money. Maybe I'm wrong, but if anyone knows of one, pleasse let me know.

 

[BelizeBreeze]

I posted a reply last night but for some reason it didn't show up today. Oh well, I'll try again. The PR for the estate (my brother) is also the attorney for the estate. That's why I'm trying to find out the proper way of distributing the assets. Yes, there is additional money in the estate, so if we put the money we owe in the middle, it would all just be on paper until we could take the remainder and figure it out. I'm just concerned because the way he is talking about figuring it out would basically screw my other brother out of some of his share, yet in the long run, put more money in his own pocket. I've been told that the money we all owe is realistically a third ours stilll, but he doesn't believe that's the way it should be. I just thought that legally there must be a calculation that attorneys depend on to split up the assets when the heirs owe money. Maybe I'm wrong, but if anyone knows of one, pleasse let me know.

Tell your brother if he is having a problem understanding the Probate code, you will offer your assistance by filing for his removal and the court appoint an executor who does not have a conflict of interest.

 

[screwed]

Tell your brother if he is having a problem understanding the Probate code, you will offer your assistance by filing for his removal and the court appoint an executor who does not have a conflict of interest.

He has been appointed PR and attorney already with the courts. The original problem was that both of my brothers were named as PR in the will, but both refused to work with the other because they do not get along. To speed up the whole process, and not drag the family through anymore embarrassment by their fighting, my other brother dropped out, walking away, and hoping for the honesty of the other brother. Since I am still trying to remain in the middle, I' just trying to find out this one process of calculation on distribution of the assets. If I could prove the way I think it should be done is the right way, then I think he would listen to me, but because he is an attorney, it is hard for me to argue the point with him without proof. And like I said, either he is just not aware of the proper way of doing this, or he is just trying to make out better himself.

 

[candg918]

Math

Aowes = 100,000, Bowes = 10,000, Cowes=125,000

Left = current assets to be distributed

Total to be divided = Left + Aowes + Bowes + Cowes

Each to receive = Total / 3 = Aowes + Adue = Bowes + Bdue = Cowes + Cdue

Adue = Each to receive - Aowes and similarly for B and C

Example 1 (someone owes more than "share")
If Left = 98,000 Total = 100,000+10,000+ 125,000 + 98,000 = 333,000
Each to receive 333,000 / 3 = 111,000
Adue = 11,000, Bdue = 101,000, Cdue = 111,000 - 125,000 = - 13,000 (C owes estate 13,000)
When C repays 13,000 total available to distribute to A and B = 112,000

Checking
Distributed from Left = Adue + Bdue + Cdue; 98,000 = 11,000 + 101,000 -13,000


Example 2
If Left = 365,000 total = 600,000
Each to receive 200,000
Adue = 100,000, Bdue = 190,000, Cdue = 75,000
Distributed from Left = Adue + Bdue + Cdue; 365,000 = 100,000 + 190,000 + 75,000

 

[BelizeBreeze]

Tell your brother if he is having a problem understanding the Probate code, you will offer your assistance by filing for his removal and the court appoint an executor who does not have a conflict of interest.

 

[screwed]

candg918
THANK YOU, THANK YOU, THANK YOU!!!!! That's exactly what I needed, some kind of a basic calculation that I could send to him to prove that I do know what should be done. I've faxed it to him, and now I can only hope that he is honest enough to do it the right way. If only in the event of a death, the family could do things the moral way to begin with, we wouldn't have to bother our court system with all of this crap!!!!!!! My parents death has taught me a life lesson, you would be amazed what problems a little money can cause. Both of my brothers have been willing to give up any kind of family connection with each other, to them now, they are each dead, and have vowed to never speak to each other again. The way I look at it is that it was important to my Mom and Dad to leave us each something after they were gone, but now I wish they would have spent it all!!!! Everyone--Good Luck ---Thanks for the help, and I only hope things work out in the long run.