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What is a Solvent Estate?

Often times medical bills and other related health expenses can begin to accrue at a substantial rate toward the end of someone's life. These debts must be paid, but you'll first need to determine whether an estate is solvent or insolvent.

A solvent estate is an estate that is deemed to have enough assets that can pay off a decedent's creditors. Basically meaning that all of the decedent's individual assets have a combined value which is greater than any bills that are owed. When the estate is determined to be solvent, it is then the responsibility of the Personal Representative to pay off those bills using the assets from the estate.

Once the probate period ends and all of the legitimate bills and expenses are paid, clearing the estate of all debts, then the estate assets can finally be distributed to the beneficiaries from the assets that remain.

Using a professionalEstate Administration Lawyer may help to determine whether an estate is solvent and help get any debts organized and paid so that beneficiaries can receive their distributions as quickly as possible.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.