If my parents died intestate and had property in several different states, how difficult would probate be? Would I have to trek out to each state and find an estate lawyer and rack up lots of billable hours? What if I said forget it, I don’t want any of their stuff anyway, and stayed home, would the states track me down and make me participate? Would I face any penalties if I just refused to do anything about the estate, assuming I’m the only living child?
Very much a hypothetical but inspired by a coworker’s situation. My parents have a will and I have siblings to pawn work off on.
IANAL but I think if you just ignored the whole situation nothing would happen to you. My state (Illinois) and I suspect every state has a registry for abandoned bank accounts and the like. If no one claims the money it eventually reverts to the state. No one insists that heirs to that money file a claim for it.
My husband and his brother were heirs to their step-greatuncle’s estate. We were notified by a third-party company that there was some money from a stock sale being held by the Sate of Illinois and due to the estate. After researching the hassle involved in claiming the money (even using the services of the third-party company) and given that most of it would go to the idiot stepbrothers, we decided to not bother with a claim.
I’m not sure what happens when instead of leaving assets the deceased leaves debts. I assume the mortgage holder will foreclose on any real property and the holder of a car loan will repossess the vehicle, but I don’t know what happens to credit card debt and the like. I suspect that the child of the deceased would be considered not responsible for any such debts, but the spouse of the deceased may be stuck legally having to pay them off.
My brother owned a house (and several thousands of dollars of debt to credit card companies). House was paid off. He died without a will. My sister and I (his closest relatives) talked to a lawyer who said “if you do nothing, the state will take the house for back taxes, and the credit card companies are out of luck.” Because his house was valued under $150K we were able to avoid probate and get a note from Epstein’s mother (i.e., the title company) to put the house on the market. The title company and lawyer’s office were able to get all the liens on his property revoked save one.
Long story short: If you chose to do nothing, you are not responsible for the debts your shiftless relatives have. If you chose to do something that involves getting their money, liens must be paid off. Lawyers can probably get the others debts zeroed out.
If you are an authorized user of a credit card, you are off the hook. If you are a joint holder of the account, you are liable for the debt even if the other holder is dead.
The estate is liable for all debts, but the heirs are not. The estate pays all the debts, and if there is not enough to pay some or all of the creditors, tough toenails for them. And if the debt is secured by something, like a house, the creditor can seize the house to collect.
My wife and I own our house together. If I kick off, she is the sole owner of the house, but she also has to continue to pay the mortgage, and can lose the house if she doesn’t make the payments. Just as if I were still alive.
If the person leaves no will, the state usually has a procedure or official who acts as executor. This person will take care of the disposal of the estate, assuming there is sufficient estate to worry about. There are standard laws of disposal - spouse and children, or equally among the children, or among the grandchildren, etc. The rules are already laid out. Common lore suggests the fees mandated for the public executor will also suck away a large proportion of smaller estates. They can contact the heirs if they know who and where they are… not sure how much effort they put into this. Unclaimed assets eventually revert to the state after a while, I assume. (They would likely not leave a house sitting around for 20 years, if no heir appears they would likely liquidate assets to wait for the forfeit time to expire.)
Thanks for the responses. That’s about what I gleaned from google searches. I was just surprised that it seems that the state wouldn’t be bothered by someone just turfing the management of the estate to the government without so much as a by-your-leave.
If one dies intestate there cannot be an executor. An executor “executes” the will and handles the probate of it. An administrator can be appointed, however, by a party of interest, to settle the estate and determine who the heirs are. The state does not get involved. (State laws may vary but this is the general rule.) The heirs vary from state to state. In most states, the surviving spouse gets either 1/3 or 1/2 and the remainder to their children pro rata. If a child predecease, his or her share would devolve to his or her children pro rata. If both a child and his/her child(ren) predecease, then that share would devolve to the grandchildren, pro rata, etc.
Usually a creditor will open an estate for an intestate decedent. If there is a conflict among the heirs as to the proper amounts, if any, then they can open the estate. Here in SC there are some properties to which deeds were never recorded or estates opened, and numerous heirs have some small undivided interests in these properties. These are called “heirs property.” Usually one of the heirs just moves in, farms the land, etc., with or without the knowledge of the other heirs. Since his possession is not adverse (he has title to an undivided interest), there can be no adverse possession.
A developer may be interested in such a parcel, but in order to get title, he would have to bring a “quiet title” suit, wherein all the heirs must be notified. In many cases, many of them can no longer be notified, but service by publication is acceptable because it is an in rem procedure
Personal property can escheat to the state, but real property is taxed and delinquent tax sales are held annually. States vary as to particulars, but there is always time periods of redemption.
If one dies intestate and has real properties in various states, the title to such parcels would devolve according to the laws of each state. The state is not going to track you down. The properties will be sold due to forfeited taxes, and you would not have to be personally notified. Notice by publication suffices. If one of the other heirs takes care of the taxes and takes over the property, and if you are agreeable to that, you should execute a quit claim deed to him, conveying and relinquishing any and all rights you may have.