My Loved One Died in Debt: What Can I Expect from Probate in Tampa?

CBS News states that Florida ranks second in the entire nation for credit card and loan delinquency. This means that if you’re mourning the loss of a loved one in the Sunshine State, there’s a relatively high chance that the individual has died with unresolved debts. How does this affect probate in Tampa? What can your family members expect from this process? Could a probate lawyer help?

Will I “Inherit” My Loved Ones Debts?

When someone passes away with unresolved debts, the estate becomes responsible for paying them. While these liabilities are not “inherited” by specific family members, the personal representative of the estate must resolve these liabilities to the best of their abilities.

That being said, family members will not have to pay these debts out of their own pockets in most cases. First, the personal representative must attempt to pay these debts from the assets within the estate. If this is not possible, then the creditors cannot seek additional compensation from the decedent’s family members.

The Personal Representative Must Pay Debts Before Distributing Assets 

Family members should know that during probate in Florida, debt payments occur before the distribution of assets to beneficiaries. In other words, you only inherit the remaining assets after the personal representative pays off the debts.

In many situations, the assets in an estate outweigh the outstanding debts. In this case, the family members and other beneficiaries would divide these remaining assets according to the Will. However, some people die with more liabilities than assets. In these situations, there may be no remaining assets after debt payments. As a result, the beneficiaries would receive nothing.

Certain Debts Are More Important Than Others

Florida has specific rules regarding the order in which debt payments must occur. There may also be a process of “asset abatement,” which involves paying debts with money that beneficiaries would have otherwise inherited. Certain types of inheritance are used to pay debts first, while others remain untouched until no other assets remain. Speak with a lawyer to learn more about these processes.

You May Be Able to Mitigate the Impact of Unresolved Debts 

Personal representatives and concerned family members may be able to mitigate the impact of unresolved debts. Creditors may be willing to negotiate settlements, and these deals could help preserve assets for beneficiaries. Probate lawyers in Tampa may be able to assist with this process, even if it initially seems as though the debts of an estate outweigh its assets.

Can a Seminole Probate Lawyer Help With Unresolved Debts?

Unresolved debts and liabilities during the probate process are relatively common in Florida. This is something that New Port Richey probate lawyers deal with frequently, and you should consider speaking with an experienced attorney if you have specific concerns about this process. Although it is true that families often “inherit” these debts, various strategies could mitigate the financial impacts of liabilities. Contact Knudsen Law today to learn more.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/Sections/0733.805.html