ToCustomer I was going to court...
I was going to court today to file the petition for probate when I realized that my mother's estate may be insolvent. As I mentioned before, my mom died intestate. Her house is her only asset. The house is valued at $280,000 and the mortgage
is $303,000. As I stated before, she has no other assets. My sister and I are the only heirs. Here are my questions
1. Most Important: As the mortgage is the only debt, and I'm going to sell, refinance or be foreclosed on, is the estate considered insolvent? The following questions assume that my that moms' estate is insolvent:
2. Do I still file a waiver of bond even if the estate is insolvent? My sister has already signed one. Do I sign one, also?
3. If I have to sign one, how should the waiver be worded as I am the petitioner and the estate is insolvent? The example given in the book you suggested is only for an estate that's solvent.
4. In the formal probate proceedings, given that the estate is insolvent, will I have to appear in court?
5. With an insolvent estate, must I have an attorney or can I transfer title on my own? Since the house is the only asset, I can't see paying an attorney $8,600 to transfer title.
6. If I can transfer title on my own, how and when do I do it? In an earlier answer you had said that my sister has to disclaim her interest in the property. Then I would be entitled to an executor's deed in favor of myself as an individual, and I could payoff or refinance the property. If that is still the case, when would I do that? Would I have to petition the court for early distribution?
7. a. Will I have to do an accounting of the estate? b. What does that entail? c. Since the house is the only asset and my sister is disclaiming her interst in the property, will an accounting even be necessary?
8. Are there other things I'll have to do because the estate is insolvent?
9. Can I file the papers now and consult with an attorney later? If so, what do I file now?
10. What if I just don't list the creditor? It will sure make things easier. I have to refinance, sell or be foreclosed on anyway, so they will be paid in any event.