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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 41003
Experience:  Texas lawyer for 30 years in Estate law
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Status of: The Estate of xxxx xxxxx My mother died on

Customer Question

Status of: The Estate of xxxx xxxxx
My mother died on January 26, 2014. She willed the Estate to her three Sons. She assigned the youngest to be Executor, the middle brother to be durable power of attorney, and wished the oldest not be involved unless he was sole survivor.
She willed that her sister remain in the estate for as long as she cared to stay. She and her husband have been renting and paying for utilities in the home. She wished the estate not be sold and the estate remain in the family, and a purchasing sibling buy out the other two ( I believe she wanted it to be me).
One of the Siblings leveraged the refinancing of the Estate and all of her credit cards (with her approval and without a paper trail) and was given all of her 40k life insurance. The credit used totals $134k. The Mortgage is 52k. This sibling( acknowledging leveraging of assets) along with aunts monthly rental contribution have been paying the mortgage sporadically thus incurring default notices and potential foreclosure. The leveraging sibling wants out, eldest want to get his third, and I would like to keep the house.
Her debt include these figures above along with end of life and doctor care: $2k
Probate and public announcement in the local newspaper in Texas occurred in June 6, 2014
Some debtor have dropped suit other are following debt collection procedures.
The statute of limitations in Texas for creditor is from date of publication to four years?
What obligation do we have to pay her debt as heirs? The Math just doesn’t add up.
My fear is that the creditors will take the Estate. What can I do to prevent this, keep the house, and settle all claims with creditors, doctors and heirs?
What questions are lacking, what answers need expanding, what am I not asking, what should I focus on in order to keep the house and not lose the farm so to speak.
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.

Hi and welcome to JA. Ray here to help you tonight.

The creditors if necessary can force the sale of the house and for them to be paid under the Texas Estate Code.There is a priority of payment.

SUBCHAPTER C. PAYMENT OF CLAIMS, ALLOWANCES, AND EXPENSES

Sec. 355.101. APPROVAL OR ESTABLISHMENT OF CLAIM REQUIRED FOR PAYMENT. A claim or any part of a claim for money against an estate may not be paid until the claim or part of the claim has been approved by the court or established by the judgment of a court of competent jurisdiction.

Added by Acts 2009, 81st Leg., R.S., Ch. 680 (H.B. 2502), Sec. 1, eff. January 1, 2014.

Sec. 355.102. CLAIMS CLASSIFICATION; PRIORITY OF PAYMENT. (a) Claims against an estate shall be classified and have priority of payment as provided by this section.

(b) Class 1 claims are composed of funeral expenses and expenses of the decedent's last illness for a reasonable amount approved by the court, not to exceed a total of $15,000. Any excess shall be classified and paid as other unsecured claims.

(c) Class 2 claims are composed of expenses of administration, expenses incurred in preserving, safekeeping, and managing the estate, including fees and expenses awarded under Section 352.052, and unpaid expenses of administration awarded in a guardianship of the decedent.

(d) Class 3 claims are composed of each secured claim for money under Section 355.151(a)(1), including a tax lien, to the extent the claim can be paid out of the proceeds of the property subject to the mortgage or other lien. If more than one mortgage, lien, or security interest exists on the same property, the claims shall be paid in order of priority of the mortgage, lien, or security interest securing the debt.

(e) Class 4 claims are composed of claims:

(1) for the principal amount of and accrued interest on delinquent child support and child support arrearages that have been:

(A) confirmed as a judgment or a determination of arrearages by a court under Title 5, Family Code; or

(B) administratively determined by the Title IV-D agency, as defined by Section 101.033, Family Code, in a Title IV-D case, as defined by Section 101.034, Family Code; and

(2) for unpaid child support obligations under Section 154.015, Family Code.

(f) Class 5 claims are composed of claims for taxes, penalties, and interest due under Title 2, Tax Code, Chapter 2153, Occupations Code, former Section 81.111, Natural Resources Code, the Municipal Sales and Use Tax Act (Chapter 321, Tax Code), Section 451.404, Transportation Code, or Subchapter I, Chapter 452, Transportation Code.

(g) Class 6 claims are composed of claims for the cost of confinement established by the Texas Department of Criminal Justice under Section 501.017, Government Code.

(h) Class 7 claims are composed of claims for repayment of medical assistance payments made by the state under Chapter 32, Human Resources Code, to or for the benefit of the decedent.

(i) Class 8 claims are composed of any other claims not described by Subsections (b)-(h).

Life insurance and bank accounts if they had a named beneficiary pass outside probate and no creditors can touch it.

I appreciate the chance to help you tonight.If you have follow up here or I missed something please just ask.

Customer: replied 1 year ago.
After notice has been filed, how long do creditors have to file suit. 4 months or 4 years? It then becomes non claim period and they still claim suit.
Hochhpot is a term I found in which. I can file suit against sibling to return insurance funds?
Expert:  RayAnswers replied 1 year ago.

Well the executor has to approve or reject them.Creditor Must Sue Within 90 Days on a Rejected

Claim

The creditor must institute suit on a rejected claim, in whole

or in part, within ninety (90) days of its rejection or the

claim is forever barred.

75

Suit is brought in the court where

the administration is pending.

76

A claimant’s judgment on a

rejected claim will not allow any execution thereon, rather,

the judgment shall be entered upon the claim docket, be

classified and paid in the due course of administration.

Expert:  RayAnswers replied 1 year ago.

If claim is accepted the court here prioritizes them as set out above and orders sale of property and payment of claims as set out in priority above.They get paid prior to any heirs.