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Advanced Funding Assignment on Heir of an Estate

Discussion in 'Estate Administration & Probate Court' started by Yuri, Jun 27, 2021.

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  1. Yuri

    Yuri Law Topic Starter New Member

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    Jurisdiction:
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    Well, let me break this down.

    Myself and 3 other siblings are sole heirs in my mothers Estate. The Estate accounting is not quite wrapped up yet, but each heir will be receiving right around $135,000 each.

    One of the Heirs (the sister) had assigned her interest in the Estate to one of those inheritance advance funding companies. She got $60,000 and her fees will be $35,000, grand total of $95k owed to the advance predator company. this assignment was filed with the court and was to be paid to them when Estate fully settled

    Early last week, the Executor of the Estate released to each Heir $100,000, including the sister who's dealing with the loan advance predators. All heir's 'cashed' their checks into their respective banks. So, this leaves in the Estate $35,000 for each heir, including the sister.

    Now, my math shows that the Advance Co. is owed $95,000 via their assignment on my sister, which 'walked' due to action of the Executor. So....the only money left in the Estate to be settled is $40,000 ($55,000 shy of what's owed to Advance Co.).

    My question to you all is, when the Inheritance Advanced Funding Co. finds out the $95,000 assigned to them got backdoored to their client and she only now as about $40,000 left in the Estate, what kind of fireworks are the rest of the heirs going to see regarding the Funding Co., the Sister and the Executor?
     
  2. Tax Counsel

    Tax Counsel Well-Known Member

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    I think you've already asked that question in another forum and the answer here will be the same. The estate would be liable to the creditor if there was a perfected lien filed with the estate to attach the sister's share and the estate personal rep may be personally liable for that. If the personal representative has a bond, the assignment company may be able to collect on the bond. The estate personal rep may be able to go after the sister to recoup what the estate owes to the assignment company. But what the estate and assignment company cannot do is go after the other estate beneficiaries. The assignment company's lien would not attach their share of the estate and, having already received their share of the estate, they are out of the picture here. Whatever the ensuing fight between the personal rep, the sister, and the assignment company, the others aren't a party to that.
     
    shadowbunny likes this.
  3. justblue

    justblue Well-Known Member

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    This is the one you are thinking of TC. It's not quite the same and a different state.

    How do I notify Lender to NOT put a lien on my property?
     
  4. zddoodah

    zddoodah Well-Known Member

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    You're question is vague and unanswerable. Among other things, the answer depends on when and how the loan company finds out about the executor's ill-advised early distribution. The executor should be discussing the matter with his/her attorney ASAP (and, if he/she doesn't have an attorney, as I suspect is the case, he/she needs to hire one).
     

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