A few questions regarding an estate.

[FastasEF]

My sister passed in Colorado and I live in Idaho. She did not have a will or estate set up. Going to Colorado is out of the question for me.

I do not plan on getting an attorney to help with any of this.

I am becoming the executor of her estate and the only assets she has are her truck which is paid off completely. A 401K that was set-up through her last employer and whatever, if any, she gets back from filing her taxes.

Her debt is about $50-$60,000 through credit cards and school loans all of which are in her name only.

I have the Collection of Personal Property by Affidavit Pursuant to 15-12-1201, C.R.S. form from the state of Colorado, because her assets are worth less than $50,000, to become the executor of the estate and to obtain all of her assets that are "probate assets".

From the research I have done, I am not responsible to pay any of her debts out of pocket but rather through whatever funds in the estate that are "probate assets".

Are her 401K and the money she gets back from taxes considered "probate assets" and automatically considered funds in the estate to be distributed evenly between debt collectors as seen fit? Or am I entitled to those funds without them becoming a part of the estate?

Secondly, in Idaho there is a Small Estate Affidavit through the Idaho Department of Transportation that makes it possible for me to become legal owner of her truck as I am the successor of her estate, and her estate is worth under $100,000, among other requirements of which I meet all.

From what I can see, using this form means I become legal owner of the truck and it does not have to be put into the estate as funds to be distributed between debt collectors. Does this sound correct?

And lastly, since there are insufficient funds in the estate to pay her debts off completely, I send whatever money possible in the estate if any, evenly distributed between collectors, along with a note stating that the remaining amount will not be paid off due to insufficient funds with a copy of her death certificate and proof that I am the executor to each debt collector?

Thank you for your time.

 

[jharris352]

No you don't get to keep the Money and stiff the debtors! And no you don't get to keep the car and stiff the Debtors! The death of your sister is not an opportunity to line your pockets with any money she left behind. You have a responsibility to pay her debts with the assets she left behind. If you use up the assets and there are still debts to be paid, then they are just out of luck. But you don't get to keep the assets and stiff the creditors.

 

[FastasEF]

Lol @ you if you think I'm just trying to "line my pockets".

I thank you for answering my questions albeit in a rude, unprofessional and asinine manner. As you probably figure with me, I don't know you and thus, have no reason to be sincere after what you assumed.

I guess my last question, whether anyone decides to answer it or not, is: I researched a little before asking my questions and on Avvo.com, someone posted a similar question regarding a father passing and the only assets left behind being two cars. One of the contributors on Avvo responded saying, and I quote: "If the only asset your father owned was a car, title can be changed by using a small estates affidavit available through the Idaho DMV: ://itd.idaho.gov/dmv/vehicleservices/documents/3413.pdf." (Copy and paste the link, and add http before the colon. I don't have ten posts to post links.)

Given the difference being not knowing if the father had any debt or not, and another difference being that I do not intend to sell my sisters truck as it holds sentimental value to me and the inquiring on Avvo did want to sell the vehicles. The above Idaho DMV form would place the title into my name, making me legal owner. Unless I'm reading the form wrong, which could very well be the case, placing the truck into my name would give me legal ownership of the vehicle and thus not allowing it to be considered an asset in the estate.

The only other thing I can see the form being for, which like I said may very well be the case, would be to put the truck into my name and legally sell it and deposit the funds into the estate. The reason I'm questioning it being this way is because of the discussion on Avvo and the above quoted contributor stated that all related directly, being the inquiring and a sister, involved would get their share of the funds acquired by selling the car(s). No mention of the funds being for debt collectors.

I'm not trying to screw debt collectors, I'm trying to hold onto something with sentimental value to me and asking legitimate questions.

Thanks again.

 

[dee_dub]

Are her 401K and the money she gets back from taxes considered "probate assets" and automatically considered funds in the estate to be distributed evenly between debt collectors as seen fit?

Yes.

Or am I entitled to those funds without them becoming a part of the estate?

No.

Secondly, in Idaho there is a Small Estate Affidavit through the Idaho Department of Transportation that makes it possible for me to become legal owner of her truck as I am the successor of her estate, and her estate is worth under $100,000, among other requirements of which I meet all.

From what I can see, using this form means I become legal owner of the truck and it does not have to be put into the estate as funds to be distributed between debt collectors. Does this sound correct?

No. The truck is already part of the estate. Creditors have first dibs on it. If it does not need to be sold to pay off creditors, you can use the form to transfer it to yourself or whatever beneficiary it should go to.

The only other thing I can see the form being for, which like I said may very well be the case, would be to put the truck into my name and legally sell it and deposit the funds into the estate.

I'm not familiar with the form, but that is far more likely the case.

No mention of the funds being for debt collectors.

Was there mention that the debts of the estate outweighed the assets?

And lastly, since there are insufficient funds in the estate to pay her debts off completely, I send whatever money possible in the estate if any, evenly distributed between collectors, along with a note stating that the remaining amount will not be paid off due to insufficient funds with a copy of her death certificate and proof that I am the executor to each debt collector?

Pretty much.

 

[FastasEF]

Thank you a ton dee_dub! Exactly the answers I was looking for. Straight forward, to the point and you weren't a dick when explaining everything. I appreciate it.

(Take notes jharris, you might benefit from it.)

 

[dee_dub]

jharris is a good guy and gave correct advice. I wouldn't take the "line your pockets" comment personally.