My mother passed away earlier this month. Unfortunately she owed more on a credit card than her total assets. I also made the mistake of transferring some funds from her checking account (after she passed) to pay a few of her bills. I now understand I should not have done that. The bank then froze her account. I am named as the Executor of her Will. What to do? Should I contact the bank?
Anyone have any experience with such matters?
Thanks.
Transferred how and to where? If it was her account only (you or someone else was not joint on it), and you transferred it to your account, then oops, that was a booboo. I should think even if you used her bill payer to pay those bills it would be an issue, unless you were on the account as well. If you or someone else was joint, the remaining funds become yours/theirs, per our atty. Additionally, it would be a mistake to pay her bills from your account in any case, even if it was her funds that are used, as now your account would be associated with her debt.
I will be embarking on this new "journey" shortly. First on the list is to get a copy of the death certificate, otherwise I can't do much of anything! The good news is most of what she still had was in a trust fund - that skips probate! The bad news is there will need to be an estate account opened:
* I have to close the SS rep payee account
* Move funds needed to keep the SS rep acct "savings" open to estate acct
(that's all that I kept in that - the SS would pay a small portion of the facility)
* Primary two of us are on, but there wasn't much - kept it low on purpose!
(close it at some point, once the funds are used, incl that savings holder)
* Due to IRS mess, there will be more to come for the 1st stimulus -> estate
* From what I read, anyone alive Jan 1, 2020 gets this new stimulus -> estate
* Refund of deposit for her room in MC -> estate
Atty said there is an abbreviated probate for assets under $25k, which ours will be, and as far as I know all her bills are paid. That info about probate can vary by state, so best to contact someone with experience, atty/tax person? Some states may not have that capability. For me, it's now just a waiting game for now. I need to get DC, various documents needed, get tax ID and open estate account, contact CU regarding the SS rep payee acct (xfer funds/close), provide trust paperwork and DC to trust minders so we can distribute (plan to hold some back, just in case!) I'm sure there will be plenty more things to juggle...
Although 2 of us are named execs, the same 2 were POAs, but guess who has done 99.9% of all the work so far? Place your bets now for who you think will be doing all the above work!!!
Discuss with atty how best to address the remaining debt - some may be more "deserving" of getting paid or there may be a "formula" the courts might use to distribute a percentage to each debt claim. Of course, atty gets paid first...
Your problem is what bills to pay first.
state is Texas for both parent and sons
Second note about POAs - they end at time of death. POAs are null and void when the person passes away. If you are joint on an account, the remaining funds become yours. Otherwise, everything else falls to an executor, whether appointed in a will or by the courts.
First step is the Lawyer's office. He or she will guide you. And they can get that EIN online in moments for you.
Know that there is no hurry. It often takes more than a year to settle an estate. Simply tell creditors that the person is deceased and the estate is in the hands of the executor.