Executor of estate on CA question

[kcarb4]

I am the executor of my father's will in CA. His estate is worth less than 150,000. He has unpaid debts. No assests need to go though probate. No real estate. Car is paid off and qualifies for transfer without probate. His personal property is just old furniture. He has IRA, Life insurance with me as beneficiary, so again no need for probate. However, creditors are saying his estate must pay these debts. How do I prove to them that the estate does not have enough money for payoff (insolvent) and get them to go away? Is there an official document I need to get? Can I get it without dealing with a court? Thank you.

 

[HRZ]

Think thru if you simply do not file the will for probate and or chose to serve as executor ..let others seek to sort out empty pot issues?

 

[justalayman]

Why shouldn’t the car be sold to liquidate it so as to pay debts?
I see estate sales all the time. The contents of homes are sold to garner as much cash as possible to pay debts.

If you’re willing to walk away from any personal property, then walk away.

 

[HRZ]

IF the OP seeks to probate a near empty probate pot , as executor his costs and commissions come off the top of the pot first ...unless it's a valuable car..the creditors are still looking at an empty pot .

 

[HRZ]

While a registered vehicle is not in the pot under Ca small estate valuation rules, the literature suggests a small estate is not an appropriate tool for insolvent estates ....sometimes just doing nothing is best action?

 

[LdiJ]

I am the executor of my father's will in CA. His estate is worth less than 150,000. He has unpaid debts. No assests need to go though probate. No real estate. Car is paid off and qualifies for transfer without probate. His personal property is just old furniture. He has IRA, Life insurance with me as beneficiary, so again no need for probate. However, creditors are saying his estate must pay these debts. How do I prove to them that the estate does not have enough money for payoff (insolvent) and get them to go away? Is there an official document I need to get? Can I get it without dealing with a court? Thank you.

The IRA and life insurance are NOT part of his estate. Those belong to you directly and you are not responsible for the debts of his estate.

If the estate is truly insolvent (selling off the car and whatever else you could to general money) then I agree that the suggestion that you simply walk away from the estate is a wise one. Take the family keepsakes that would not be worth anything to anyone else and walk away. Let the creditors probate his estate if they want it that badly.

 

[Dandy Don]

Ignore the creditors. If they call you, tell them the estate is insolvent.

 

[HRZ]

if you do not officially ever pick up the ball you remain free to do nothing ..if you pick it up you may need to officially show the pot is empty