Estate/Debt of Husband-NY Law?
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Story: A woman's husband passes away and leaves behind a debt of close to $13,000 from a bank loan. He left in his bank account under $5,000 and also some stocks worth about $6,000.
The husband had no will and it has been almost a year and still the wife has not filled the paper work to claim herself as the executor of his estate.
She is concerned that the debt will fall upon her. She is an unemployed, low-income senior citizen.
They had one child who is a married adult.
What should the widow do? She has no idea how to proceed and everyone gives conflicting information.
Serious law info only please!
Estate/Debt of Husband-NY Law?I am assuming that the widow was not a co-borrower on the loan. If she had signed the note at the bank, she would be liable on the loan herself.
Under the New York intestate law, EPTL 搂 4-1.1 (a)(1), she is entitled to $50,000 plus half of the decedent's assets. However, since the decedent had no assets worth more than the bank account and the stocks, her interest would be limited to that.
If the bank accounts and the stock were owned as joint assets, either as tenants in common or as tenants by the entireties, she would own them by operation of law, and there would be no need to open an estate administration.
I am assuming that the funeral bill has been paid.
Where a person has a situation involving a possible insolvent estate, it is best to involve a professional in sorting out matters. Here, we have a situation where the estate liabilities are greater than the estate assets. State law provides for a priority of payment of claims and expenses, with priority given to payment of the funeral bill and administration expenses. In this case, get an attorney, and open an estate administration. After liquidating assets and payment of priority claims, the bank loan will be paid "pennies on the dollar", and the estate will be closed. Note that if family members paid the funeral bill, they would be reimbursed out of estate assets.
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