What should I do if there is not enough cash in the San Diego probate estate to pay all of its debts?
If you are the executor or administrator of a California probate estate, part of your responsibilities include paying the valid debts of the estate. Sometimes, there is not enough cash available to make these payments. When this happens, the executor or administrator often must sell other assets of the estate. When this is done, it will create liquidity and gain access to the funds necessary for paying the debts.
Generally, an executor or administrator has two options for selling probate assets. The following is an overview of these two options:
Obtaining court approval to sell an asset.
If the executor or administrator chooses seek court approval before selling an asset, he or she will request a court hearing or court order for the sale. Assets such as stocks and bonds generally require a court order. Real estate typically requires a court hearing. During this hearing, the estate will be forced to sell to any bidders who appear offering a higher price than the original buyer.
Using the Independent Administration of Estates Act to sell an asset under California probate law.
The Independent Administration of Estates Act allows an executor or administrator to sell an asset after giving fifteen days prior written notice to any beneficiary of the estate. If there are no objections, the sale can proceed. If a party does come forward and objects, the executor or administrator must then obtain court approval in order to make the sale.
To learn more about probate administration and the repayment of debts, contact an experienced San Diego probate attorney at (888) 443-6590.
The Administrator of an Estate is a legal term. This term refers to someone appointed by a Court to administer the Estate of a deceased person with no Will.
A person who benefits from a trust, will, or life insurance policy. This includes heir, heiress, inheritor, legatee; recipient, receiver, payee, donee, assignee; devisee, grantee.