After the death of a family member, his or her estate is still responsible for any outstanding debts and/or taxes. It is up to the estate administrator to reconcile these liabilities, given there are enough assets to pay. If the estate is insolvent or if there are not enough assets to cover all debts, legal guidelines will dictate the priority of creditors to be reimbursed.
While paying estate bills and taxes may seem straightforward, the process can be very confusing for those who are not familiar with Connecticut probate laws. It is therefore essential to hire an experienced probate attorney to help you understand whom to pay and when.
As your legal counsel, one of our first steps will be to identify all of the estate’s liabilities. These can include:
- Mortgage loans
- Property taxes
- Utility bills
- Car loans
- Credit card bills
- State income taxes
- Federal income taxes
- Personal loans
- Student loans
- Homeowners association dues
- Loans against retirement accounts
- Probate administrative fees
- Probate legal fees
After identifying the estate’s outstanding debts, we will address a variety of questions before making payments. We need to determine if any major assets (such as a home) will be liquidated, which creditors have filed claims, which creditors are not entitled to repayment, if there are enough assets to pay all debts/expenses, and which creditors have priority repayment status.
While there are a lot of moving parts for which we must account, it is our goal to simplify this complex process for you. We will help you understand your legal responsibilities as an estate administrator and ensure that you take the proper steps to settle estate liabilities..
As the executor or administrator of an estate, one of the most important duties you will have is to pay any outstanding estate debts or taxes, using the estate’s assets. This must be done before any distributions are made.
If you need a Connecticut lawyer handling estate taxes, we encourage you to contact our law firm at 203-864-6625 to learn more. We can help ensure proper payment of estate debt/taxes and protect you from any personal liability.