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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 38233
Experience:  Texas lawyer for 30 years in Estate law
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I'm adm of my sister's estate of $8,700.00 from an IRA she

Customer Question

Hi, I'm Pat. I'm adm of my sister's estate of $8,700.00 from an IRA she had w/no bebeficiary, no kids or spouse. I personally paid $8,500 for her funeral expenses & still owe funeral home $2,6188. Also personally paid $4,500.00 for monument expenses. Can I repay myself 1st from this estate? I need these funds back. She owed $600.00 for two credit cards & taxes on the $8.700.00 IRA & $5,500..00 in personal taxes. I live in Boston MA. Thanks
JA: What state is this in? And when did the issue begin?
Customer: Boston MA. She passed away Aug 8, 2016
JA: What documents or supporting evidence do you have?
Customer: I have certified bank checks from my personal bank acct that I've paid these expenses & docs from Funeral Home w/ bal due in my name. Also have court docs as being Administrator & EIN # from IRS
JA: Anything else you want the lawyer to know before I connect you?
Customer: Will I be personally responsible for payin her unpaid taxes on this estate money, her owed back taxes or 2 credit cards. Thanks
Submitted: 2 months ago.
Category: Estate Law
Expert:  RayAnswers replied 2 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Expert:  RayAnswers replied 2 months ago.

So were you named on the IRA as beneficiary or is it frozen and requires probate? Please clarify this, its important.

Expert:  RayAnswers replied 2 months ago.

Did you open probate here?Just trying to understand, was this the sole assets of the estate?

Customer: replied 2 months ago.
She had no beneficiary for this IRA or PENSION. I went to probate court, paid fee & filed all necessary paperwork being appointed per rep of her estate the same day. It took 2 months to get a check from the IRA of $8,700.00. I'm still waiting for the check for the Pension which is $5,400.00 before taxes. All paperwork filed in MASS
Expert:  RayAnswers replied 2 months ago.

So here you need to set up an estate account , get an EIN number for it, file a creditor claim here for the funeral expenses, one for you, one for the funeral home, this appears to take all the funds.If it does there is an estate insolvency filing.You write the judge and tell them its insolvent at that point. Make sure your claim goes in first here for what you paid including estate filing fees, have court approve payment, then payment of whats left to funeral home, unless there is surplus that takes care of it.You have court close the estate as insolvent and the creditors left are without remedy.

Expert:  RayAnswers replied 2 months ago.

You and the funeral home get paid for the funeral expenses and the rest here get nothing because the estate becomes insolvent.Make sure you submit your claims first and get them approved so you get your money you are owed then the funeral home.

I appreciate the chance to help you today.I wish you the best here.

Thanks again.

Expert:  RayAnswers replied 2 months ago.

Forms for you here

http://www.mass.gov/courts/forms/pfc/pfc-mupc-forms-generic.html#3

Once you have court approve payments to you for reimbursement and funeral home then notify the court that the estate is insolvent.The judge will close the estate and you are done here.

If you can positive rate 5 stars when we are done it is much appreciated.

Expert:  RayAnswers replied 2 months ago.

If you haven't got an EIN number for the estate and and account you can do so here.Deposit any funds from the IRA or anything else here to pay yourself and the funeral home for expense reimbursement.

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Customer: replied 2 months ago.
I have an EIN from the IRS, an Estate Bank Account & the check from her IRA. I'm still waiting for the check from her Pension. Should I file the Creditor Claim for myself & the Funeral Home & wait for a decision from the Court before I deposit the check? Or can I just deposit it now, pay myself & the Funeral Home w/o filing a claim? This would deplete the funds from her IRA. Can I do the same when I receive her Pension check? I know I won't get back all the money I've spent on my Sister's behalf but can the IRS file charges against me for not filing a Creditor Claim? I can only repay myself & Funeral home. Also can IRS charge me for not paying taxes on the IRA & PENSION funds that the estate received? Thanks
Expert:  RayAnswers replied 2 months ago.

File your claim here for yourself and funeral home and have it approved by order from the judge.Then when you get the funds pay them.Then you need to advise the judge estate is insolvent and ask to close it.Then inform IRS person deceased and was insolvent and ask them to close the file.

That should help you finish this out.

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