In the event of a death who gets money back first?

Question

My aunt passed away, she left me both beneficiary of an insurance policy and executor(sans will). I paid off the funeral with the insurance policy.Then i find out about a $3000 credit card debt. The estate is only valued at $4000, Do I get the money for paying the funeral first or does the credit card company get first shot at the estate account?

Answer 1

If she died without a will, her estate is settled according to state probate law.  How can you be executor if there was no will?  The probate court would have to appoint one.

Answer 2

you need to read your state's laws on the subject.  search "state law probate" or similar.

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then read your agreement with the funeral home.

Answer 3

The insurance money does not form part of her estate. That is a benefit and the money belongs to you. You are required to pay the debts of her estate from her assets. If you personally signed the contract for her funeral expenses (i.e. not acting as executor for the estate) then you would be liable for those fees. You could not claim this against the estate unless you had a prearranged agreement with your aunt that this could happen (although with no will this will be impossible to prove if only verbal). Therefore the credit card company has a valid claim against the estate and would be paid first, or else they would claim conflict of interest if you paid yourself first.,

Answer 4

I would first notify the credit card company of her death by contacting them, telling them and they will rquest a death certificate. They may or may not discharge the debt after that. You might also let them know she died without a will or estate. But they will want a death certificate more than likely if there is no court or lawyer involved.