, About.com GuideIf your loved one has died and the medical and credit card bills have started piling up, then you'll need to understand who will be responsible for paying off all of these debts and in what amounts. The answer depends on whether the is solvent or insolvent.A solvent estate is one that has enough assets to pay off the decedent's bills. In other words, when added up, the value of all of the decedent's individual assets exceeds the amount of bills owed.
Skip to main content.Establish an estate account or trust with a bank for asset protection. bank image by Pefkos from Fotolia.comEstate or trust accounts are set up to provide a safe haven for assets as they are being passed on or used on the behalf of the account beneficiaries. The estate account holds funds for a short period of time while settling an estate after the death of the owner of the assets making up the account. A trust contains specific assets, held on behalf of the individual establishing the trust for the use of the beneficiaries of the trust. Setting up each account type can be complicated, often requiring the services of financial or legal professionals, but each serves the same basic purpose: keeping the assets safely intact for the use of those chosen by the asset owners to benefit from those assets.Apply to the IRS for a taxpayer ID number in the estate’s name.
How to Establish a Tax ID Number for an Estate | eHow.comEstablishing a tax identification number for a deceased family member's estate is a simple, straightforward process that you can get on the Internet or through the mail. To apply for the tax ID number, you must have some critical pieces of information--the deceased's full name and Social Security number as well as your contact information. Go to the IRS Web site at https://sa1.www4.irs.gov/modiein/individual/index.jsp. The number you need to obtain for the estate is called an employer identification number, or EIN. Do not let the name confuse you--EINs are routinely used for estate tax purposes by the IRS .Choose whether you'd like to apply for the tax ID number online or if you'd rather mail a paper form SS-4 to the IRS for processing.Click the blue link that says "Form SS-4" at the bottom of the page just below the "Begin Application" button, if you prefer to apply by mail.
How to Get a Clear Deed & Establish Heirship on Property of the Deceased | eHow.com The court may order an administrator to convey property on behalf of heirs. If a relative died without leaving a will stating how his property is to be distributed, state laws of intestate succession will determine the distribution. Even though the laws are in place, a family member will have to take the initiative to start the process of transferring assets from the deceased's estate to those entitled to the property under state law. This may be accomplished in different ways depending on the length of time the relative has been deceased and whether all heirs agree to the distribution of the property.
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Settling an estate can be a time-consuming and complicated process. Although states have different rules and each situation is unique, we have created this checklist to help you understand some of your responsibilities during this difficult time.
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When someone dies the decisions to be made and action to be taken can be confusing. Dealing with the loss of a relative or a friend can be a difficult time and most people are unsure as to what action to take.
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to register and contribute to How To.Before applying for a Grant of Representation (probate) from the Probate Registry there are various matters that need to be attended to.
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. MyStateWill.com | Payment of the Deceased's DebtsKurt R. NilsonKurt R. Nilson, Johnstown, PennsylvaniaAn individual debt, or personal debt, is an obligation that just one person agrees to repay. This type of debt is also described as debt that is "entered" or "taken" in just one name without another person's participation. For instance, when you apply for a credit card by completing the application with just your signature, you are personally agreeing to repay any debt that is properly incurred with that credit card.While living, the sole borrower is the only person required to repay an individual debt; the lender does not have the ability to require someone else to make payments towards that debt. Just as when a borrower is living, another person cannot be held accountable for the borrower's personal debts after his or her death. This also remains true even though a person may be related to the deceased debtor, whether by blood or marriage.For instance, Cliff dies with a credit card that has a $5,000 balance. If this card was opened and held solely in Cliff's name and used solely for his benefit, the credit card company cannot require his wife, Claire, to pay off the balance with her individually owned assets.However, it is important to note that all voluntarily incurred debts, such as credit card charges, are contractual and controlled by the terms established by the company. If another person is added to the account as an authorized user, depending upon the company specific terms, he or she may be agreeing to repay all of the debt when using the card.The fact that Cliff's family isn't obligated to pay his debts with their own assets doesn't mean that the debts are simply forgiven at his death. Cliff's estate is obligated to pay the credit card balance or as much of it that can be paid before the estate is entirely depleted of assets.Each state has laws that establish a legal order for the payment of estate obligations, which includes disbursement to beneficiaries or heirs.This order typically involves payment of burial and funeral costs, expenses of the final illness (hospitalization, medication, etc.), probate fees, and death taxes. These items are paid prior to the payment of any regular, unsecured debts.Once these priority obligations are satisfied, the estate generally begins paying the unsecured debts. Finally, after all debts are paid the assets that remain in the estate, if any, are available for distribution to the beneficiaries or heirs.Suppose that Cliff has a $25,000 estate and the costs of his burial, final medical expenses, and probate fees are $7,500, $8,000 and $3,000. Once these items are paid, Cliff's estate has $6,500 remaining.Following the statutory order of priority, the $6,500 in Cliff's estate will be applied to any outstanding, unsecured debts. With $6,500 remaining, Cliff's estate can pay the full amount of his $5,000 credit card debt. If this $5,000 credit card is Cliff's only remaining debt, once it is paid there will be $1,500 left to distribute among his heirs.
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probate legal definition of probate. probate synonyms by the Free Online Law Dictionary.3,868,981,580 visitors served. is proved valid or invalid. The legal process wherein the estate of a decedent is administered.
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THIS INFORMATION HAS BEEN ISSUED TO INFORM AND NOT TO ADVISE. IT IS BASED ON PENNSYLVANIA LAW. THE STATEMENTS ARE GENERAL, AND INDIVIDUAL FACTS IN A GIVEN CASE MAY ALTER THEIR APPLICATION OR INVOLVE OTHER LAWS NOT REFERRED TO HERE.
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Kent A. Jeffirs, Attorney at Law, Crown Point, Indiana K ENT A. J EFFIRS When a person dies, probate is the legal process by which the Court will: (1) determine the validity of his or her will, if any; (2) determine the nature, extent and value of the deceased persons assets; (3) establish and pay the valid debts and taxes of the deceased person; and (4) distribute the remaining assets to the persons named in the will, or, if the person had no valid will, to the persons determined by Indiana law after payment of applicable debts, taxes and expenses.
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citizensinformation.ie Nearly everyone has some money and/or property which has to be dealt with after death. If there are substantial amounts involved, it is advisable to get professional advice from a solicitor and/or instruct a solicitor to deal with everything.