Paying the debts of deceased's estate

Triceratops Ballet

Just wondering if anyone can advise on this as I am my mothers executor. When paying off debts out of the estate who comes higher in the priority order, a creditor with unsecured debt or the solicitor administering the estate, I think its the creditor but my mothers solicitor has put herself ahead of that in the divisions that she has done, I just want to be sure all is above board, as I've written to her querying this several times since June and she is yet to respond to me.

Marcusm

citizensinformation.ie is often helpful in these circumstances


Duty of personal representative

When you die, all your assets are gathered together by your personal representative (your executor or administrator). The first duty of the personal representative is to pay your funeral and other expenses and then your debts.

Your estate is considered to be insolvent if you do not have enough assets to pay your funeral and other expenses and all your debts. If you have no assets, then the payment of your debts does not arise. If you have some assets but they are not sufficient to cover all your debts, the debts must be paid in a set order. If your estate is solvent, there are rules about which assets are to be first used to pay your debts.
Insolvent estate

The order of priority for payments from an insolvent estate is as follows:

1) Funeral, testamentary and administration expenses. Testamentary and administration expenses are the expenses incurred in dealing with your estate; 2) Creditors who have security, for example, mortgage providers; 3) Preferential debts - these are mainly taxes and social insurance contributions; 4) Ordinary debts.

If your estate is solvent but not sufficient

If your estate is solvent, then, again, your funeral and other expenses and your debts must be paid first. If you die intestate, the rest of your estate is then divided in accordance with the rules on intestacy.

If you have made a will and your estate is not sufficient to cover your debts and all the bequests which you have made, then the debts are paid from the following assets and in this order:

1) Property which you did not deal with in the will (that is, property which would be distributed in accordance with the rules on intestacy); 2) The residue - this is the amount left over when specific bequests are dealt with; 3) Property specifically appropriated for the payment of debts; 4) Property charged with the payment of debts; 5) Pecuniary legacies - these are bequests of money as distinct from property or goods; 6) Other bequests.

When making your will, you may specify a different order for the payment of your debts.


http://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/debts_after_death.html

Triceratops Ballet

I had read that but I still wasn't sure, I take it then that her fees come under Testamentary and administration expenses? in which case she gets paid first?

Peregrinus

dottie_lottie wrote: »

I had read that but I still wasn't sure, I take it then that her fees come under Testamentary and administration expenses? in which case she gets paid first?

Yes.