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Surplus funds from foreclosure. Need options. (SC)

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What is the name of your state? SC

My mother passed in April of last year. She had virtually no assets other than a car and was living in a trailer she could not afford that I was trying to talk her into moving out of. She inherited it from her mother who purchased it somewhere in the mid 90s. My 56 year old half brother (separate fathers) who has rarely held down a job throughout his life, was living with my mother at the time. The home was in complete disrepair hence why I was trying to get my mother out. Upon her passing, the bank quickly foreclosed since my brother is for all intensive purposes a bum. My father flew out and paid for a portion of the funeral services.

After this happened, my brother quickly started looking at me as his next meal ticket and started poking and prodding about living with me. I live in my own home about 50 miles away. Two weeks after the funeral, he was hitting me up for her bank card to empty the meager amount of funds in her bank account. When I went no contact, I eventually got a schizo style text from my brother accusing me of stealing my mother's will and threatening to get me locked up since the will would clearly state my mother wanted him to have her car. Convenient since it was her only asset and none of the financial burden of the loss fell on him. I am absolutely positive my mother had no will considering her financial situation. The accusation is doubly bizarre to me considering from my understanding any will would be on file with the law firm it was filed with and would instantly be known about upon my mother's death. Had I known how things would have played out, I would have paid for my mother to have one written myself. Lesson learned.

Ultimately I ignored this text and any other contact and tried to file for representative of her estate. As did my brother. While he also continued to squat in the trailer and illegally drive my mother's car with no insurance or license. And change the locks to where I could no longer gain entry to the home. Since we were contesting one another, every time I would go to any court clerk in the town my mother resided, I would routinely be told I needed legal representation. So basically my brother got every benefit and I was told to change anything, I would need legal representation for an estate likely not worth that investment-it is just my mothers car a 2011 Kia Optima. Its not like were talking a luxury SUV here. So I had pretty much given up.

The trailer sold about a month ago. And even though I own my own home, I never even thought of the equity that had been paid into the home over the past 25 years or so. Long story short, once the home was sold I got a letter from a lawfirm about surplus funds from the sale of the home. The total is roughly 25k. So now potentially legal action is worth it. My ultimate goal is for any funds to go to my mother's remaining funeral expenses which are sizable. I've always been under the impression than when it comes to an estate, funeral expenses take priority over all other debts. Is this correct? Does it vary by state? At this point, is legal action worth it?

I've tried to stick to the facts here but there are a litany of reasons my brother is trash and I figured I needed to include some for context. Like the fact that he was estranged from my mother for a decade and only reached out when he needed a place to stay. He is in current possession of her car solely because she was letting him drive it while she was in the hospital before she passed. Regarding debts, my mother had no other creditor debts that I know of that could be a factor for these surplus funds. However, considering that I am now considering legal actions if there is anything I'm overlooking that may make this a waste of time, I'd like to know about it.
 


adjusterjack

Senior Member
Important question. Was your father (or your half brother's father) married to your mother at the time of her death?

If not, then you and your brother would share her estate under intestacy.

You might as well make some sort of arrangement with him or you're going to make some lawyers very happy.
 

Zigner

Senior Member, Non-Attorney
I've always been under the impression than when it comes to an estate, funeral expenses take priority over all other debts. Is this correct?
While @adjusterjack is correct about you and your brother sharing equally in an intestate situation if mom wasn't married at the time of her death, I also agree with you that funeral expenses are a priority and are to be paid out before any remaining assets are divided. With that said, I have a hard time believing that you can justify $25k in funeral expenses. As an example, let's assume $10k for bona fide funeral expenses, leaving $15k plus the car. Assuming there are no other debts for the estate to pay, that means that you and your brother are entitled to $7,500 each plus half the value of the car. If the car is worth $5k, then you are each entitled to $10k total. If your brother wants the car, then he should get $7,500 + the car and you should get $12,500. It's really simple math here. Drop the animosity towards your brother and treat this like a business transaction. Once it's done, you never have to have anything to do with him again.
 
While @adjusterjack is correct about you and your brother sharing equally in an intestate situation if mom wasn't married at the time of her death, I also agree with you that funeral expenses are a priority and are to be paid out before any remaining assets are divided. With that said, I have a hard time believing that you can justify $25k in funeral expenses. As an example, let's assume $10k for bona fide funeral expenses, leaving $15k plus the car. Assuming there are no other debts for the estate to pay, that means that you and your brother are entitled to $7,500 each plus half the value of the car. If the car is worth $5k, then you are each entitled to $10k total. If your brother wants the car, then he should get $7,500 + the car and you should get $12,500. It's really simple math here. Drop the animosity towards your brother and treat this like a business transaction. Once it's done, you never have to have anything to do with him again.
As disgusted as I would be by this, you're probably right.

I contacted the paralegal/secretary of the special referee who will be arbitrating this case. She asked for my father and brother's address. She made it clear that everyone has to be notified before anything can proceed. She has not been able to get in contact with my brother. This alleviates a massive concern since I thought I had missed some kind of window. My father called me and told me he received the same form I did after giving his address. I have three main questions.

1. In scenarios like these, is this a cut and dry even split among interested parties or does any of the 'drama' for lack of a better term have an affect on arbitration? My brother was estranged and mentally abusive to my mother for over a decade before conveniently reconciling after being evicted and needing a place to stay. If none of this is relevant, I obviously don't want to mention it.

2. What sum should my father list for his claim? It is he that has had to bear the brunt of expense for my mother's services. Should he list just those expenses or is there any downside to claiming everything? Basiclly are you looked at unfavorably if you claim the total sum or is it simply a matter of having to back any claim you make? Since my brother is a moron, I'm sure he will atleast attempt to claim everything.

3. Since my brother has been illegally driving my mother's car for over a year now, does the referee have the ability to take this into account as far as dividing surplus funds? My father is the one who found this vehicle for my mother and paid the 1,000$ insurance deductible for her to purchase it since my brother wrecked her previous vehicle joy riding in it. I can most likely round up hard proof of these facts if they are even relevant.
 

Zigner

Senior Member, Non-Attorney
I can't advise you on specifics that your father should claim, but I will say that he should claim everything he is legally entitled to. Nobody will "look down on" him for claiming everything he is entitled to.
 
I can't advise you on specifics that your father should claim, but I will say that he should claim everything he is legally entitled to. Nobody will "look down on" him for claiming everything he is entitled to.
I guess what I'm asking is how likely is it that this is simply split evenly among all interested parties? By my father claiming less, could this some how entitle my brother to claiming more? In my opinion he has zero legal standing to do this but this is why I keep defaulting back to asking how likely this just ends up being split evenly among all other interested parties.
 

LdiJ

Senior Member
I guess what I'm asking is how likely is it that this is simply split evenly among all interested parties? By my father claiming less, could this some how entitle my brother to claiming more? In my opinion he has zero legal standing to do this but this is why I keep defaulting back to asking how likely this just ends up being split evenly among all other interested parties.
Unless your mother and father were married at the time she passed, your father would only be an interested party to the extent that he advanced money for her funeral/final expenses. You and your brother would split the remainder of the estate after your dad was reimbursed.

If your parents were married, then your dad is entitled to what he advanced for the funeral/final expenses plus 1/2 of the remainder of her estate, you and your brother would split the other half of the remainder of her estate.

So no, there is no scenario where it would be split evenly between you, your brother and your father.
 
Two more question regarding this. Would the special referee have any authority to determine the value of assets within my mother's estate as far as determining shares? My brother has essentially claimed a vehicle without probate being started. Is this relevant to the surplus funds or a separate issue entirely?

Second, if probate can never be started due to contesting between who will represent an estate, what ultimately happens? Does the estate sit in limbo forever?
 

LdiJ

Senior Member
Two more question regarding this. Would the special referee have any authority to determine the value of assets within my mother's estate as far as determining shares? My brother has essentially claimed a vehicle without probate being started. Is this relevant to the surplus funds or a separate issue entirely?

Second, if probate can never be started due to contesting between who will represent an estate, what ultimately happens? Does the estate sit in limbo forever?
The car and the surplus funds are both part of the estate.

If two competing parties want to represent an estate it does not sit in limbo, the probate judge decides which one of the parties will handle the estate.
 
The car and the surplus funds are both part of the estate.

If two competing parties want to represent an estate it does not sit in limbo, the probate judge decides which one of the parties will handle the estate.
To clarify, I have repeatedly been told the estate can not enter probate without legal representation. Does this mean it sits in limbo forever?
 

Zigner

Senior Member, Non-Attorney
To clarify, I have repeatedly been told the estate can not enter probate without legal representation. Does this mean it sits in limbo forever?
That is simply not true. Who told you that? Having an attorney handle an estate might be a wise thing to do, but there is nothing in the law that prevents a non-attorney from administering an estate.
 

LdiJ

Senior Member
That is simply not true. Who told you that? Having an attorney handle an estate might be a wise thing to do, but there is nothing in the law that prevents a non-attorney from administering an estate.
Ditto. You do have to apply to the court to be appointed as the administrator/executor/representative but people do it without attorneys all the time.
 
That is simply not true. Who told you that? Having an attorney handle an estate might be a wise thing to do, but there is nothing in the law that prevents a non-attorney from administering an estate.

Any time I would attempt to file for representative, I get a random city clerk telling me I need legal representation since my brother also filed and it will be 'contested'. So essentially Ive been lead to believe the estate sits without entering probate perpetually. It has now been like this for about a year and a half.
 

Zigner

Senior Member, Non-Attorney
Any time I would attempt to file for representative, I get a random city clerk telling me I need legal representation since my brother also filed and it will be 'contested'. So essentially Ive been lead to believe the estate sits without entering probate perpetually. It has now been like this for about a year and a half.
You were told that you needed representation because you were asking questions of the clerk that were outside the scope of the information that a clerk is allowed to provide. In essence, if YOU don't know the answers, then you need to find someone (an attorney) who can advise you, because a clerk cannot give legal advice.
 
Ditto. You do have to apply to the court to be appointed as the administrator/executor/representative but people do it without attorneys all the time.
The way it was presented to me, its simply not even an option to do without an attorney. I wasn't asking the clerk legal questions- it seemed more I was being told any and everything just for me to leave them alone. If I could simply have a judge decide arbitrarily who was representative of the estate between me and my brother instead of being stuck in infinite limbo of 'you need an attorney', Id gladly do so. Instead, its always been presented as contested representative= get an attorney or the estate will never go to probate
 

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