Insolvent estate

[bluegill]

Tennessee
My mother passed away last week. Me and my two sisters were named coexecutors. House has a mortgage of around 60,000. We agreed to use insurance to pay off mortgage, which is 75,000. Sisters do not want to sell the house. I have agreed.They want to split property and eventually pay me off. My question is any debts that exceed the funds that we have, will we be responsible for since we didn't sell the house?

bluegill

 

[advisor10]

JULY 18, 2001

DEAR BLUEGILL:

As executors you will be responsible for using estate assets to pay for any outstanding bills, but you can not be held personally responsible (in other words, you wouldn't have to pay these debts out of your own personal funds).

Did your mother have any other assets (bank accounts, pension benefits, CD's, etc.) besides the house? If she did, then use that to pay future bills. If she doesn't, then the estate can be considered bankrupt or insolvent and the bills will remain unpaid.

SINCERELY,

[email protected]

 

[advisor10]

JULY 18, 2001

It might be wiser to delay paying off the mortgage balance until you see what the estate debts are.

SINCERELY,

[email protected]