[Emland]

I think "estate" is overstating thing a bit, but I don't know what else to call it.

My mother died intestate last October. She had no real estate, nor any valuable personal property and the clerk of court has waived the inventory accounting since her total worth was determined to be less than 15k. I requested and was granted to be her Administratrix of Estate because she had a life insurance policy which was made out to "the estate of (my mother)." She bought this policy back before I was born when she had a house, farm, cars, etc.

I paid for her funeral expenses of about 5k out of my pocket because I knew it was going to take a while to get the paperwork done and insurance check back. She still has a 2k doctor's bill, 4k credit card balance and whatever (if any) taxes on her estate.

I was told by my bank that there's a list of who gets paid first on the internet, but after surfing this morning can't find it. I'm guessing the list would go like this: taxes, funeral director, doctor bills, credit cards and personal loans. Does anyone know for sure?

Can I pay myself back for the funeral expenses or did I make a mistake by loaning money to an insolvent estate? I guess the biggest problem I have is making 5k of insurance money go around 10k worth of debt.

[AK lawyer]

Depends on which state you are in. Usually funeral expenses come before credit card debt, doctor bills, etc. but the particular state probate statute is where you should look first.

[this8384]

I think "estate" is overstating thing a bit, but I don't know what else to call it.

My mother died intestate last October. She had no real estate, nor any valuable personal property and the clerk of court has waived the inventory accounting since her total worth was determined to be less than 15k. I requested and was granted to be her Administratrix of Estate because she had a life insurance policy which was made out to "the estate of (my mother)." She bought this policy back before I was born when she had a house, farm, cars, etc.

I paid for her funeral expenses of about 5k out of my pocket because I knew it was going to take a while to get the paperwork done and insurance check back. She still has a 2k doctor's bill, 4k credit card balance and whatever (if any) taxes on her estate.

I was told by my bank that there's a list of who gets paid first on the internet, but after surfing this morning can't find it. I'm guessing the list would go like this: taxes, funeral director, doctor bills, credit cards and personal loans. Does anyone know for sure?

Can I pay myself back for the funeral expenses or did I make a mistake by loaning money to an insolvent estate? I guess the biggest problem I have is making 5k of insurance money go around 10k worth of debt.

Have you consulted with an attorney about this? Virginia law may or may not allow you to pay yourself first. It may be considered "unethical"; this website may be helpful:
Checklist: The Executor's Role - Estate Planning and Probate

[Emland]

I haven't consulted an attorney, yet, because I didn't want to incur more debt on an insolvent estate.

Thanks for the link.

[this8384]

I haven't consulted an attorney, yet, because I didn't want to incur more debt on an insolvent estate.

Thanks for the link.

No problem. Hope everything works out for you; sometimes, paying an attorney is a necessary evil(no offense anyone! :) )

[AK lawyer]

I haven't consulted an attorney, yet, because I didn't want to incur more debt on an insolvent estate.

Many attorneys offer free-of-charge initial consutations.

Sorry about not noticing your state earlier. This appears to be the distribution scheme you are looking for:

§ 64.1-157. Order in which debts of decedents to be paid.

When the assets of the decedent in the hands of his personal representative are not sufficient for the satisfaction of all demands against him, they shall be applied in the following order to the payment of:

1. Costs and expenses of administration;

2. The allowances provided in Article 5.1 (§ 64.1-151.1 et seq.) of this chapter;

3. Funeral expenses not to exceed $3,500;

4. Debts and taxes with preference under federal law;

5. Medical and hospital expenses of the last illness of the decedent, including compensation of persons attending him not to exceed $400 for each hospital and nursing home and $150 for each person furnishing services or goods;

6. Debts and taxes due this Commonwealth;

7. Debts due as trustee for persons under disabilities, as receiver or commissioner under decree of court of this Commonwealth, as personal representative, guardian, conservator or committee, when the qualification was in this Commonwealth and for moneys collected by anyone to the credit of another and not paid over, regardless of whether a bond has been executed for the faithful performance of the duties of the party so collecting such funds;

8. Debts and taxes due localities and municipal corporations of the Commonwealth;

9. All other claims.

No preference shall be given in the payment of any claim over any other claim of the same class, and a claim due and payable shall not be entitled to a preference over a claim not due.

http://leg1.state.va.us/cgi-bin/legp...0+cod+64.1-157

So, if the expenses are like this:

...
I paid for her funeral expenses of about 5k out of my pocket... She still has a 2k doctor's bill, 4k credit card balance and whatever (if any) taxes on her estate.

...

Then the order would be something like this:
-$3,500 of the $5,000 you paid in funeral expenses (under subsection 3);
-the doctor bills up to the limitations specified in subsection 5 ($150 if it's just one doctor, for example);
-all other debts (including the $1,500 of funeral expenses not covered above), and unpaid "last illness" doctor bills, all payable pro-rata.

There shouldn't be any estate or inheritance taxes on such a small estate.