Remember rapper Nate Dogg? He died in 2011 without a will or trust, but with 6 children of unascertainable ages and different mothers with unpaid child support and medical bills of $290K. His primary asset was a house with $200K of equity. The administrator of his estate has a contract to sell the house for $340,000 but his children are opposing the sale because it will not leave them enough money. So, a couple of things: 1. A decedents debts must be paid before estate beneficiaries receive any proceeds of the estate. It is unfortunate for his children that there will likely be no assets left for them after the payment of debts, but an administrator cannot magically make a house worth more than the market is willing to pay nor make the debts less. 2. If he had wanted to provide for his children and not worry about his debts, he could have purchased a life insurance policy to benefit them. Consider what you want to leave to your children. Life insurance is a good tool to provide for your beneficiaries. If you are interested in life insurance, we have a great group of colleagues we can refer you to.
Posted on: Mon, 12 May 2014 18:04:10 +0000
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