Beneficiary Rights

What is the name of your state? Michigan
I was left as sole beneficiary in my fathers will, also listed to be the PR.
I signed over PR rights to my sister. I have 4 other siblings who have interest
in the estate, this includes the PR. The estate has no money, only real estate.
More is owed than what this property and house is worth.
My sister and the attorney are petitioning the court to settle the estate at the mercy of the court. Does this mean that I as sole beneficiary would be liable for all outstanding Debt?
(mortgage)
Can I request that I am made the PR. in leiu of closing estate until I can figure out what to do with the property?

Q: Does this mean that I as sole beneficiary would be liable for all outstanding Debt?
(mortgage)

A: Not unless you receive some property (real, personal, mixed) from the estate.


Q: Can I request that I am made the PR. in leiu of closing estate until I can figure out what to do with the property?

A: Yes, but since you already gave up being PR, I doubt the judge will let you change it again.

nazzers said:

What is the name of your state? Michigan
I was left as sole beneficiary in my fathers will... I have 4 other siblings who have interest in the estate, this includes the PR.

Click to expand...

Huh? "..have interest in the estate..."?

How much is owed on the properties and how much are they worth (or what would they sell for)?

Lets just say more is owed than what it's worth.
(Mortgage loan, and my father also had equity loan.)
two different companys.
I guess the next question is: If I were to inherit, would l be responsible for all debts, even if they have not made claim on the estate?(if estate is settled and closed)
One has made claim against the estate,
The other (the equity line) has not made claim.
This property has sentimental value, but with the current market in Michigan,
it has lost value quickly. It needs work, but I certainly don't want to be paying more than
it's worth now. I was also sole beneficiary on life ins. policy's. I split with all siblings, because it was the right thing to do. Now I regret it.
We also have a seperate Trust in Hawaii, that no one has authority over! Can't find original paper work, hired people, still didn't find it. It is also ready for for-closure!
I offered to finance that ,and give them percentage of equity, but they won't consider anything less than an equal split. If It's my time, money and risk, my cut / percentage of net equity should be greater.
This is really just a big mess!
It will be lost before they make a decision!

nazzers said:

Lets just say more is owed than what it's worth.
(Mortgage loan, and my father also had equity loan.)
two different companys.
I guess the next question is: If I were to inherit, would l be responsible for all debts, even if they have not made claim on the estate?(if estate is settled and closed)
One has made claim against the estate,
The other (the equity line) has not made claim.
This property has sentimental value, but with the current market in Michigan,
it has lost value quickly. It needs work, but I certainly don't want to be paying more than
it's worth now. I was also sole beneficiary on life ins. policy's. I split with all siblings, because it was the right thing to do. Now I regret it.
We also have a seperate Trust in Hawaii, that no one has authority over! Can't find original paper work, hired people, still didn't find it. It is also ready for for-closure!
I offered to finance that ,and give them percentage of equity, but they won't consider anything less than an equal split. If It's my time, money and risk, my cut / percentage of net equity should be greater.
This is really just a big mess!
It will be lost before they make a decision!

Click to expand...

Answer this first: You say you are sole beneficiary but you also have 4 sibs who have an interest in the estate.

What do you mean?

The will states that he left everything to me.
That he was not unmindful of his other children
but chose to leave them nothing.
From what I have been told, they would have
to contest the will.
There is no equity, so what is there to contest.
No one is willing to pony up any money but me.

Under the petition for probate and/or appointment of personal representative.
#4) So far as I know or could ascertain with reasonable diligence, the names and addresses of the heirs and devisees of the decendent and other interested persons, the relationship to the decendent, and the ages of any who are minors as as follows:
(then it lists the 5 of us as Heir/Devisee)

Would they have to contest the will if the will states he chose to leave them nothing.?
Would I have to contests that they are not Heirs.?
This is all very confusing.

State law differs, but most likely the petition requires that all potential heirs under intestacy (no will or an invalid will) be listed. That does not mean that a valid will's provisions are overridden.

Well, yeah, the others can choose to contest the will. That is their legal right. Kind of expensive and likely futile if the will states explicitly that they are left nothing. But, why would they if the debts exceed the assets?

anteater said:

State law differs, but most likely the petition requires that all potential heirs under intestacy (no will or an invalid will) be listed. That does not mean that a valid will's provisions are overridden.

Well, yeah, the others can choose to contest the will. That is their legal right. Kind of expensive and likely futile if the will states explicitly that they are left nothing. But, why would they if the debts exceed the assets?

Click to expand...

Yes, I am curious also.

If this is an exhausted estate (that means they ain't no dough no where), then why would you or anyone else care about what happens here?

She is hoping in vain that there is something of value in the property/estate, when actually there isn't, as you have so aptly stated.

Whoever holds the mortage on the property is probably going to sell it to regain their equity.

Dandy Don said:

She is hoping in vain that there is something of value in the property/estate, when actually there isn't, as you have so aptly stated.

Whoever holds the mortage on the property is probably going to sell it to regain their equity.

Click to expand...

Not hoping in vain that there is something. I KNOW there's nothing.
I just want to make sure that the court can not make me responsible for the
debt, if I don't want it.
The only value this property holds for me is sentimental.
I spent time there, taking care of this beautiful waterfront Cabin. My sibs NEVER
Did! When dad went to Hawaii, no one wanted to be bothered. I paid all the bills there, and the up keep.
And at this point, my sibs just want a fight! about anything! Not going to give it to them regarding the estate. The PR, my sis, seems to have the control to do as she wishes.
I don't want to get the screws! She HAS NOT communicated with me regarding anything.
She has not asked me what I would like to do. Buy, sell, or the like. I have recently contacted the estate
attorney, he's been a bit helpful, be needed to be careful. "conflict of interest". She found out I was speaking
with him, thus he has told me that he can no longer speak to me per her request.
I should have not given her control as PR. Certainly regretting that. Lesson learned.

The Trust / condo in Hawaii may be a different story.
$70,000 in equity. No one is doing anything. They are all willing to let it go to for-closure
just so I don't have the control. I made a proposal to finance it. Giving them a percentage
of net equity. NOW or Later. This property can be changed to a fee simple. it is now a lease hold.
If I /we turned it into a fee simple the value would jump 2 fold.
I guess they were upset with my low ball percentage offer.
(keep in mind, I would be fronting all monies)
It was just a proposal, was expecting a counter offer.
That didn't happen, just made matters worse.
Any advice there?

Ok, Ispoke with a different attorney about the closing of the estate and the Trust /trustee.
I have also found out since I last posted, that the other members
of the family are motioning A Court to appoint a trustee to
the Hawaii property.
I now have a few more questions, since my visti with an attorney.
I haven't gotten a response to my last post about
the trust, and am Now wondering if I should jump Forums
to the Trust section?
I have never been to a Forum, so I'm a completly new at this!
What is proper etiquette?

I have been looking around a bit, and I see that it can
be very helpful to people in situations such as this.
And I thank you all for the help you have given to me thus far.

A couple of my questions are:
1) Where will the the motion be filed to appoint a trustee for the Hawaii
property? I was told it would be here in the county I live in.
He was a resident of Hawaii, and died there. The estate was opened in the
county where his Michigan residence is. So...... Hawaii? His Michigan County? or will it be in the county that the trustee lives in? Sis lives in a different county than I. Her attorney said he was opening in this county, not hers? I'm confused.
2) What is the liabiliy of the trustee if the property in Hawaii is forclosed? and all sibs
are listed as Beneficiaries / Heirs?
Forclosure has to be soon, as no payments have been made since the Fall!
As far as I'm aware.
I am having a hard time beleiving that they would even bother to motion
for a trustee to be appointed, if they don't have a buyer waiting or in mind.
And if she/they do, why in the hell would they not have shared that info?
It would have prevented a ton of ill will! I would have never proposed a thing
if I thought I could sit back and collect a check! I never wanted the hassell, but
was willing to finance it, so we could all benefit.
Sorry, I get angry the more I think about it.

nazzers said:

Lets just say more is owed than what it's worth.
(Mortgage loan, and my father also had equity loan.)
two different companys.
I guess the next question is: If I were to inherit, would l be responsible for all debts, even if they have not made claim on the estate?(if estate is settled and closed)
One has made claim against the estate,
The other (the equity line) has not made claim.

Click to expand...

They don't need to "make a claim". They already have a claim: it's called a second mortgage against the real estate. Foreclosing the collateral (subject to the first mtg) is their recourse if the loan defaults.

The PR is responsible for paying estate debts IF there are enough assets to pay them. There is no way you will be ever held responsible for any debt.