Risk of Losing House in Pennsylvania

[mbrando100]

What is the name of your state (only U.S. law)? Pennsylvania- Schuylkill County- Mahanoy City 17948

My grandmother passed away on September 6th of this year. She left me a house with no right of survivorship. This house has been valued at $5,000 and contents at $100. There is $12 in her only checking account and there are no other assets in the estate.

The current debts are around $2,000 on a credit card, and Medicaid expenses. She stayed in a nursing home for rehab for no more than 180 days. She also however received home based services through nursing agencies which may have been more than 180 days. (not sure of the length of this one) We just received a letter from DCM services for debt collection out of the estate.

Right now the funeral cost us $8,300. I understand the state claims usual appear behind funeral costs in priority. Does this mean the estate will be labeled as insolvent even though we used our own funds to cover the funeral and not the $5112 in the estate?

Second, we can cover the credit card debt out of our own funds, is that allowed to avoid liquidation of the house? However there is no way we can pay back Medicaid with our own funds. Our lawyer is saying 'they (Medicaid) don't take houses' exact words... Should we trust him? Does that sound right, since I'm pretty sure Medicaid does in fact take houses to use to pay back the expenses of care?

The will has been in probate since around September 10th. He said Medicaid has 90 days to file their claim and the estate should be closed after those 90 days are up, does this sound right?

If the house is determined to be liquefied is it possible to just buy the house out of the estate?

***I know I posted about this before, but there is some new information in this post that may be of help of figuring out what exactly may happen

 

[justalayman]

Were your numbers correct? The house is worth $5000?

Personally i cannot imagine a house worth that little.


But anyway, funeral expenses are third in priority (behind administration costs and a family exemption where applicable) but to be reimbursed for the expenses (or at least as much as the estate can reimburse you) you need to file a claim for it. Otherwise the next debt priority steps in and takes anything!they are owed that is available.

Yes you can buy the house but you need to be cautious to make sure you pay provable market value. Given the funeral costs are owed to you, it should be simple for you to end up with the house. Since the estate owes you money for the funeral expenses you should be able to take the house as partial reimbursement of those costs.

You do not need nor want to pay estate debts out of your pocket. As it stands the estate will still owe you several thousand dollars even if you end up with the house.

 

[mbrando100]

Were your numbers correct? The house is worth $5000?

Personally i cannot imagine a house worth that little.


But anyway, funeral expenses are third in priority (behind administration costs and a family exemption where applicable) but to be reimbursed for the expenses (or at least as much as the estate can reimburse you) you need to file a claim for it. Otherwise the next debt priority steps in and takes anything!they are owed that is available.

Yes you can buy the house but you need to be cautious to make sure you pay provable market value. Given the funeral costs are owed to you, it should be simple for you to end up with the house. Since the estate owes you money for the funeral expenses you should be able to take the house as partial reimbursement of those costs.

You do not need nor want to pay estate debts out of your pocket. As it stands the estate will still owe you several thousand dollars even if you end up with the house.

I just do not want to lose this house to a claim. So you're saying I should file a claim for $8300 and that will precede medicaids? Our lawyer didn't even mention that we had to do that! It's a row house and in a very poor area, it was appraised at 5k and itemized in the estate as such. Correction- I want to move in to this house, not sell it. Will I be able to accept real property as reimbursement or will it need to be liquefied first?

 

[justalayman]

If you are owed the funeral costs, it doesn't matter if you are paid in cash or assets, if you are willing to accept assets. Value is value.

Obviously most creditors want cash but ultimately a dollar cash is the same as a dollar worth of assets. It's a value that counts.

The reason for filing as a creditor is because it is for funeral expenses. Otherwise you go way down on the list of priority of creditors. Since funeral costs are above almost all other debts it allows the estate to pay you, in the form of assets if you will accept it, as payment before any other creditors get paid.

 

[mbrando100]

If you are owed the funeral costs, it doesn't matter if you are paid in cash or assets, if you are willing to accept assets. Value is value.

Obviously most creditors want cash but ultimately a dollar cash is the same as a dollar worth of assets. It's a value that counts.

The reason for filing as a creditor is because it is for funeral expenses. Otherwise you go way down on the list of priority of creditors. Since funeral costs are above almost all other debts it allows the estate to pay you, in the form of assets if you will accept it, as payment before any other creditors get paid.

So you're saying that by filing that claim for $8,300, it will make the estate insolvent, after I am given the house, forcing all other claims to be forfeited? (Credit card/Medicaid/etc), I know lawyer and court fees come first, but if we pay him out of pocket that's ok right? I mean he won't liquidate the house to pay himself will he?

 

[LdiJ]

So you're saying that by filing that claim for $8,300, it will make the estate insolvent, after I am given the house, forcing all other claims to be forfeited? (Credit card/Medicaid/etc), I know lawyer and court fees come first, but if we pay him out of pocket that's ok right? I mean he won't liquidate the house to pay himself will he?

All he cares about is getting paid. He doesn't care who pays him.

 

[mbrando100]

All he cares about is getting paid. He doesn't care who pays him.

ok so our lawyer today seemed confused when we asked about a claim for funeral expenses. It was paid with life insurance money but the insurance benefit was left to me, not to the estate. The life insurance benefit is exempt from probate in our case. So that was technically my money. However, the lawyer didn't appear that he understood that and that he didn't seem so sure filing such a claim would save the house. What am I missing here and should I be worried about this lawyer??

 

[justalayman]

Ask him;

Is the estate liable for the funeral expenses? (Should respond with yes)

Ask; if we paid them out of our pocket in anticipation of being repaid by the estate, are we not eligible to file a claim to be reimbursed for the funeral expenses? (Should respond with yes)

Then ask; so what is the problem with filing the claim to be reimbursed for the funeral expenses?



Hooefullly by now he understands so, continue with;

Is there a problem with accepting the house at value as partial reimbursement for the funeral expenses? After all, not only am I not getting full reimbursement of
The funeral expenses, I am avoiding the cost of marketing the house in an effort to liquidate it so as to be able to reimburse me for the funeral expenses. Sure seems like it's the best outcome that can be expected.

 

[mbrando100]

Ask him;

Is the estate liable for the funeral expenses? (Should respond with yes)

Ask; if we paid them out of our pocket in anticipation of being repaid by the estate, are we not eligible to file a claim to be reimbursed for the funeral expenses? (Should respond with yes)

Then ask; so what is the problem with filing the claim to be reimbursed for the funeral expenses?



Hooefullly by now he understands so, continue with;

Is there a problem with accepting the house at value as partial reimbursement for the funeral expenses? After all, not only am I not getting full reimbursement of
The funeral expenses, I am avoiding the cost of marketing the house in an effort to liquidate it so as to be able to reimburse me for the funeral expenses. Sure seems like it's the best outcome that can be expected.

It seems very difficult to speak directly with him, I can only ever get through to his secretary. I faxed in the letter from DCM services (still don't know what debt they're trying to collect) as well as the receipt of payment to the funeral home with a note stating "need to file a claim for reimbursement of funeral expenses paid out of pocket by myself". I've been calling every day and getting no where. Is it up to him to file the claim or do I have to? What happens if he 'forgets' or just doesn't file it when it should be filed?

 

[justalayman]

Whomever is acting as administrator receives
The claim and acts on it as they deem proper.

So, is the attorney merely legal counsel or is he the administrator?

 

[mbrando100]

He is the administrator