What happens when a family member dies, leaving behind mortgage, debts, and property without drafting a will or living trust? Of course, the probate procedure is taken up for sorting things out. Probate is the procedure of paying off the final expenses and bills of the deceased. It also includes transferring his property to the living heirs or beneficiaries. Handling mortgages and debts is important even before the probate procedure starts. For this, you will need the services of a probate attorney near me 11590.
Probate Attorney Handling Mortgages and Bills Before Probate
The first thing that a probate attorney near me 11590 does is make a complete list of the decedent’s liabilities. They can do this even before opening the probate property.
Coming up with a list of the deceased’s liabilities helps in streamlining the probate procedure later. Statement and bills that need to be included are:
- Credit lines
- Property taxes
- State and federal income taxes
- Condominium fees
- Boat and car loans
- Storage fees
- Personal loans
- Student loans
- Loans against different insurance policies
- Loans against the retirement accounts
- Utility bills
- Credit card payments
- Mobile phone bills
- Dividing Liabilities into Different Categories
Once the list of liabilities is ready, it is time to segregate the same into two varied categories. These include:
Ongoing liabilities during probate or administrative expenditures.
Liabilities that can quickly be paid off entirely once the probate has been opened. These include mainly the final bills of the decedent.
Here, administrative expenditures include condominium fees, mortgage, storage fees, utility bills, and property taxes. The expenditures need to be current until the closure of the estate. To a considerable extent, it would be feasible for the estate heirs to pay off these bills until the opening of the probate. They can always take the help of a probate attorney near me 11590 to carry out this process.
Inclusions of the Final Bills of the Deceased
The final bills of the deceased generally include personal loans, income taxes, credit card bills. It can also have mobile phone bills, and loans against insurance policies and even retirement accounts. There is no need for the beneficiaries to pay off these bills from their wallet. Instead, they must wait and allow the personal representative of the estate to handle the same.
The estate executor can work in close collaboration with a probate attorney near me 11590 in settling the entire estate of the deceased. In case of certain liabilities, the beneficiaries decide whether they want the property with the pending loans.
If a certain beneficiary wants to keep a house or car, it is necessary for him or her to pay down the debt. Nevertheless, payments can even be made through the estate.
Probate Attorney Sorting Mortgages during the Probate Procedure
It is the estate executor or personal representative who is responsible for the payment of all administrative expenditures. The executor also carries out the task of settling the final bills of the deceased after the probate is opened.
The process involves validating the debts and their extent of validation. Along with this, the executor also needs to assess the assets of the decedent. They pinpoint the ones that can be sold or liquidated for paying ongoing estate expenditures along with final bills.
The beneficiaries had made payments of some of the bills of the decedent even before the probate. In this case, it is the sole responsibility of the executor to reimburse them. However, there’s one exception here.
Another case might also appear. Suppose, the deceased left property to a specific beneficiary in his trust. That beneficiary wants to refinance or assume the mortgage against the asset. In that case, no need to reimburse the beneficiary.
Probate and Mortgages
Beneficiaries inheriting the properties of the deceased might assume the mortgage both after and during the probate. They have to follow the laws existing in the state where the deceased lived.
Like all the other aspects of a probate, there are different ways for handling the remaining debts and mortgages of the deceased. Executors with specific concerns must have a clear understanding of all the available alternatives.
Discussing the situation with experienced and learned probate attorneys can help the executors determine the right way of dealing with the issue.
That is it for today! You have got a thorough idea about how to take care of the mortgages during the probate process. You also understood that only a probate attorney can help you handle everything without a single complication. So, going for their service is really helpful!