Monday, November 9, 2009

What Does Virginia Law State About a Deceased Person's Bills if There Is No Will & No Estate?

What Does Virginia Law State About a Deceased Person's Bills if There Is No Will & No Estate?

The time following a loved one's death can be a challenging period. Dividing assets and settling debts can take time. If the deceased did not have a will in place, the difficulties are compounded by the fact that the state will become more involved. Each state's laws vary to a degree; Virginia has laws in place to pass along property and, in some cases, debt.

Probate

    Probate is the manner through which a last will and testament is recorded and certified proven to be valid. Since Virginia does not have a court that deals specifically with probate, the deputy clerk or the Clerk of the Circuit Court of the locale where the deceased resided handles the probate. If the person dies without a will intact -- known as "intestate" -- the Commonwealth of Virginia has laws in place to handle property and debt.

Without An Estate

    There are occasions where someone passes away without a will and without any estate. For example, if a person has resided in a nursing home facility on state assistance for an extended period of time, he may no longer have any capital. In this case, the debt is usually forgiven rather than being passed to a surviving member of the family. The only case in which a family member may be held responsible is if he is a co-signer or listed on a joint account. Also, if the estate is nonexistent or very small -- Virginia qualifies an estate of less than $15,000 as such -- no formal administration of remaining assets is required.

Intestate

    If a person dies intestate, the Commonwealth appoints an administrator or executor to divide and appoint assets. The assets are made available only after all debts of the deceased have been settled, and funeral expenses and taxes paid. According to Virginia law, any remaining assets are given to descendents, if they exist. For example, the first course of descent would be to a surviving spouse, then children and their descendants. If neither a spouse nor children exist, the assets go to the deceased's surviving parents, then any siblings and their descendents.

Process

    The process of settling debts if no will exists can be complicated. The state will appoint the responsibility of executor to a beneficiary. If that person refuses, the state will continue down the line of descent until finding someone who is suitable in the eyes of the court. The executor of the estate must determine the value and tally up any outstanding debts that are owed, including bills. Due to accounting and tax purposes, the executor can't have control over figuring the value; rather, he should perform an inventory that will in turn determine value. From the final accounted value, any debts, bills and state and federal taxes will be taken.

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