Brother passed away, leaving a pile of debt.

[Michbarb]

My brother passed away on Oct. 4th. He was 1 month behind on his mortgage, and his house, which has been refinanced 3 times has less value than what is owed. He was an alcoholic and has around aprx. 10 to 15 thousand in medical bills. He may have somthing from life insurance because he worked for the state of Michigan. They won't tell me anything yet because I haven't yet received my copies of the death certificates.
The only other asset, ( I think) is a small rental house that he owned outright. He purchased that as a forclosure property for around fifty thousand. He then fixed it up and its being rented to a good tenant. He had no will. Our parents are deceased, he had no wife, and no children. I am his sister, and the closest living relative. He also had a girlfriend who is at the house.She receives disability only. I don't have much income, and cannot afford attorneys fees. I also can't afford to make his house payments of 900.00 a month. What do I do? I was told not do go to probate because his house is going to forclosure. What will happen?

 

[army judge]

My brother passed away on Oct. 4th. He was 1 month behind on his mortgage, and his house, which has been refinanced 3 times has less value than what is owed. He was an alcoholic and has around aprx. 10 to 15 thousand in medical bills. He may have somthing from life insurance because he worked for the state of Michigan. They won't tell me anything yet because I haven't yet received my copies of the death certificates.
The only other asset, ( I think) is a small rental house that he owned outright. He purchased that as a forclosure property for around fifty thousand. He then fixed it up and its being rented to a good tenant. He had no will. Our parents are deceased, he had no wife, and no children. I am his sister, and the closest living relative. He also had a girlfriend who is at the house.She receives disability only. I don't have much income, and cannot afford attorneys fees. I also can't afford to make his house payments of 900.00 a month. What do I do? I was told not do go to probate because his house is going to forclosure. What will happen?

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First of all, I'm sorry to hear of your loss.
I pray that your family (you) will get through this and recover one day soon.
May your brother, finally, have peace!

Your brother died intestate.
That is, he died without benefit of a will.
Because he chose to NOT create a will, the state will decide how his assets are disbursed.

You have no choice but to go through probate.

Here is a link that discusses Michigan probate procedures.
Read through it, and contact a lawyer.
Without listing ALL of your potential problems, the one immediate one is getting his girlfriend OUT of YOUR house.
Well, its your home, if you want it.
His rental home is also your home, if you want to pursue it.
To pursue it, and legally obtain it, a lawyer is crucial.

You can pay the lawyer out of the proceeds of the estate.


Finally, you do not owe your brother's debts.
You are not responsible for your brother's debts.
Do not let anyone trick you into discussing or eventually paying his debts.

One last thing, contact his employer.
Find out if you are the beneficiary of his life insurance policy.
You might also be the benficiary of his pension.
I don't know about Michigan, but single state employees in texas can leave their pension benefit to relative upon their death.
.
.
.
.

http://www.erdevig.com/intestacy.html

http://www.mystatewill.com/statutes/mi_law.htm

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The word "probate" refers to the administration of a deceased person's estate. If a person dies leaving a valid will, then their estate is distributed in accordance with the provisions in their will. If a person dies without a will, this is called dying "intestate," and their property must be distributed in accordance with the provisions of the state's "intestate succession" law.

The term "heirs" refers to those persons entitled to the property of the deceased under the "intestate succession" law. There is a very specific "order" in which property will be distributed to a person's family, if a person dies without a will. It is roughly: surviving spouse (if any), then children, then siblings, etc. Note that non-related individuals (live-in companions, "significant others," caretakers, non-adopted step-children) have no rights of intestate inheritance from a deceased under the law of Michigan. Only an attorney can analse and explain to you how the laws of "intestate" inheritance will be applied in your specific situation.

In order to make sure that your property is distributed in the way that you want after your death, you must have written "estate planning" documents in place, such as a Will or Trusts or Deeds, etc. Without this, the laws of the State of Michigan will decide who gets your property.

If a deceased person owned no property titled in his or her name alone, then there is no property to administer and no need for probate. For example, if spouses own all of their property together as husband and wife, then upon the death of the first spouse the property passes automatically to the surviving spouse without the need for probate. However, cars, houses, bank accounts, stocks, bonds, etc. that were in only the deceased's name will require the opening of a probate estate in order to be distributed.

In Michigan, probate administration is under the "jurisdiction" (authority) of the probate court, which is a "county" court. Several detailed forms, documents, and "sworn statements" must be filed with the probate court in order to open an estate. These forms are often complicated and time consuming. The family of the deceased person is not required by law to have an attorney to open an estate. However, most people find it is much easier and faster to have an experienced lawyer handle the legal paperwork involved in administering an estate.

When the estate is opened, a. "Personal Representative" will be appointed to "administer" the estate, which means sign the documents, pay the deceased's debts and distribute the property. "Personal Representative" is the term used under Michigan law for the position which was formerly called the "executor" or "administrator". Most wills will specify who the Personal Representative will be. It is usually someone close to the deceased, and may or may not be a family member. Generally, this is an unpaid position, although the Personal Representative may be reimbursed for expenses incurred in executing his or her duties.

When a person dies without a will there is an order of priority established by the court as to who would be a suitable Personal Representative. It is roughly: surviving spouse (if any), then children, then siblings, etc. However, the family can "agree" on any party, as long as they sign the necessary releases. Often a survivng spouse is too upset or too elderly to be comfortable acting as Personal Representative, and they may defer to one of their children.

The Personal Representative is granted "Letters of Authority" that allow him or her to sell property (such as cars and houses), access safe deposit boxes, etc. It is the duty of the Personal Representative to first pay the debts of the deceased out of the proceeds of the estate, including burial expenses. Then the Personal Representative must distribute the assets in strict accordance with the will - or if there is no will, in strict accordance with the laws of "intestate" inheritance.

Probate proceedings are generally public in nature. In most circumstances, anyone can examine the court files t review a deceased person's estate. This is done by simply going to the probate court for the county where the individual resided at the time of death, and asking to see the file. Copies of all documents (except "vital records" such as birth certificates) can be made for a nominal charge.

There are certain filing fees involved in opening an estate, a "notice" to creditors must also be published properly in the newspaper, and the court will also require the filing of an "Inventory" of property and annual and final "Accountings." The court also must be satisfied that all "interested parties" have been served with proper notice of the proceedings. And in many cases certain "releases" will have to be obtained. It is a time consuming and often tedious process that can take many months.

Because of the complex and detailed legal nature of administering an estate, the largest expense is often the attorney fees. Attorneys generally charge by the hour for probate work, and will want a "retainer" or down payment before beginning. These fees may sometimes seem very large to someone who is unfamiliar with probate administration. However, once most people experience how much is involved in administering an estate, they understand the need for these fees.


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http://lawyersinmichigan.com/art_probate.htm

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