Funeral Charges

[43Campbell]

What is the name of your state (only U.S. law)? Virginia

My father passed away. Girlfriend signed all paperwork at funeral home, stating that she was beneficiary of insurance policy. Insurance is not paying for expenses. Who is now liable for the bill. There was no will. He has home with a mortgage. Please advise what I need to do.

 

[anteater]

Girlfriend signed all paperwork at funeral home, stating that she was beneficiary of insurance policy. Insurance is not paying for expenses. Who is now liable for the bill.

I don't see how the funeral expenses are connected to the insurance, but... From the funeral home's point of view, the girlfriend. However, if the personal representative of the probate estate is unwilling to pay the expenses to the funeral home directly, the girlfriend can make a claim against the probate estate which most likely would be allowed if the expenses are reasonable.

The priority of debt payment in VA is:

§ 64.1-157. Order in which debts of decedents to be paid.

When the assets of the decedent in the hands of his personal representative are not sufficient for the satisfaction of all demands against him, they shall be applied in the following order to the payment of:

1. Costs and expenses of administration;

2. The allowances provided in Article 5.1 (§ 64.1-151.1 et seq.) of this chapter;

3. Funeral expenses not to exceed $3,500;

4. Debts and taxes with preference under federal law;

5. Medical and hospital expenses of the last illness of the decedent, including compensation of persons attending him not to exceed $400 for each hospital and nursing home and $150 for each person furnishing services or goods;

6. Debts and taxes due this Commonwealth;

7. Debts due as trustee for persons under disabilities, as receiver or commissioner under decree of court of this Commonwealth, as personal representative, guardian, conservator or committee, when the qualification was in this Commonwealth and for moneys collected by anyone to the credit of another and not paid over, regardless of whether or not a bond has been executed for the faithful performance of the duties of the party so collecting such funds;

8. Debts and taxes due localities and municipal corporations of the Commonwealth;

9. All other claims.

No preference shall be given in the payment of any claim over any other claim of the same class, and a claim due and payable shall not be entitled to a preference over a claim not due.

 

[43Campbell]

Funeral charges

Nothing is in probate due to decendent not having anything. An account has been set up trying to sell all anything of value. He presently just has a home that is currently being rented. All rent money is going to the mortgage payment.

 

[anteater]

Nothing is in probate due to decendent not having anything.... He presently just has a home that is currently being rented.

Then he does have something.

 

[justalayman]

and whose name is on the title of the home and if more than just his name, how was title held between the tenants?

 

[43Campbell]

Just his name is on the actual mortgage. Back in 2008 he had a tenant to rent home with option to buy. He paid $5,000 down (all paperwork done legally and recorded). Also a promissory note was signed for six months to be paid in full. The tenant failed to follow through two and half years later. What would be his options on purchasing the home and us selling to pay off dads burial.

 

[justalayman]

I said "home" not mortgage but I will presume the title is also as an individual.

What would be his options on purchasing the home and us selling to pay off dads burial.

Whose options?

 

[43Campbell]

The home or deed to property is in my dad's name only.

 

[anteater]

Someone, and as a son, the court would give preference to you if you wish to do so, will have to open probate in order to have the legal authority to do anything with the property.

You can do a search on terms like: Virginia probate. You will find a number of websites that will give you an overview of the probate process.

...and us selling to pay off dads burial.

I take that "us" is you and the girlfriend(?). If you have a good relationship with her and are working together, it is fine to think in terms of "us." But, since your father did not have a will, legally there is only "you." (Unless, of course, your father had other children.)

 

[43Campbell]

No it was a very ugly funeral service with girlfriend in control of everything stating that she was beneficiary of our dad's insurance policy, no expenses was spared. The children was not asked input on anything.

Now that the policy which was done for burial expeneses is not paying, she came forward, approached one child, stated that we need to take care of bill and that she did not have time to deal with it.

I have spoke with Funeral Home. Stated that they would go after person whom signed contract, which we did not, that leaves us to try to sell him home to pay this expense.

No we do not have a connection with his girlfriend. We have had to hunt for any information to become adminstrators of his affairs, she has given things away that belonged to him. So each day is a surprise on what we find.

 

[justalayman]

then let her and the funeral home duke it out. Per the contract, she owes. Unless she attempts to file a claim against the estate, there is no reason to have any further dealings with her.

 

[43Campbell]

That would be wonderful for her to have to deal with it. But I'm not the kind of person to treat anyone unfairly like she did to us siblings. So hopeful things will work.

Thanks for your postings.

 

[justalayman]

maybe you can use this to your advantage in finding information about your fathers accounts. Just be cautious you do not commit yourself or the estate to pay the bill before you have your payment in exchange, if you decide to utilize the power you now have.

 

[43Campbell]

Found out yesterday that girlfriend took out a personal loan to pay funeral bill.

 

[Kiawah]

Unless there is money (cash accounts) to pay off all the administration and bills (including funeral home charges), the probate process will have the estate administrator (possibly you) selling the house to get all the bills paid. Anteater posted the priority sequence above. You'll undoubtedly need the advice/counsel/assistance of a lawyer to get thru this probate process.