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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 36240
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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My mother died sept 2014 in ny state. I am executor is of her

Customer Question

My mother died sept 2014 in ny state. I am executor is of her will. She has less than $30,000 of assets none of it is real property. She owes money to the IRS, credit card companies and medical bills. I also have to go to a lawyer to write a letter in regards ***** ***** will and he charge $400. The tombstone has not been purchased for her yet. What is the order that the bills must be paid? Do we have to wait till all the bills are paid to see if there's enough money left to purchase a tombstone? As an executor or administrator I heard you could also get paid for the time it takes to take care of this business. if this is true how do I document my time, what is The rate of pay, and when does this get paid in the order of paying bills?
Thank you for your assistance
Margaret
Submitted: 1 year ago.
Category: Estate Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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This is the priority under NY law:
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N.Y. SCP. LAW § 1811 : NY Code - Section 1811: Payment of debts and funeral expenses
The reasonable funeral expenses of the decedent subject to the payment of expenses of administration shall be preferred to all debts and claims against his estate and shall be paid out of the first moneys received by his fiduciary. 2. Every fiduciary must proceed with diligence to pay the debts of the decedent according to the following order: (a) Debts entitled to a preference under the laws of the United States and the state of New York. (b) Taxes assessed on property of the deceased previous to his death. Any taxes so paid by a fiduciary on real property which descends to a distributee or passes to a devisee shall be a charge thereon for which the beneficiary must reimburse the estate unless in the case of wills the testator has indicated expressly or by necessary implication that such taxes be otherwise paid. (c) Judgments docketed and decrees entered against the decedent according to the priority thereof respectively. (d) All recognizances, bonds, sealed instruments, notes, bills and unliquidated demands and accounts. 3. Preference shall not be given in the payment of a debt over other debts of the same class, except those specified in subparagraph (c) of subdivision 2. A debt due and payable shall not be entitled to a preference over debts not due.
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So funeral and administrative expenses are paid first followed in descending order by other debts. A tombstone would be a funeral expense so would be first priority.
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""As an executor or administrator I heard you could also get paid for the time it takes to take care of this business. if this is true how do I document my time, what is The rate of pay, and when does this get paid in the order of paying bills?""
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The commission rate in New York for each Executor is 5% on the first $100,000 in the estate, 4% on the next $200,000, 3% on the next $700,000, 2-1/2 % on the next $4,000,000 and 2% on any amount above $5,000,000.
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The fee is considered an administrative fee, so it comes right after the funeral expenses.
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thanks
Barrister

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