Actual Case
Thelma was an 80 year old widow who had no children. Her closest relatives lived a state away and Thelma was dependant on her neighbors of forty years for help.
Recently, the neighbor lady who helped Thelma with meals, grocery shopping and a variety of other things, found Thelma sitting in her usual spot on the couch motionless. The neighbor called 911. A squad arrived, pronounced that Thelma had expired and called the local funeral home to pick her up.
Then the problems started. Although Thelma owned her own home with about $30,000 of equity in it, she had very little in the bank and over $100,000 in consumer debt (credit cards, etc.). None of her relatives wanted to be involved in arranging her funeral for fear that they would be stuck with the bill. In fact, they wanted the state to pay for it! The funeral home had Thelma for nearly a month. They had no authority to do anything with her.
Finally, the neighbors stepped up and decided to make sure that Thelma got buried beside her husband. After securing the permission of the family, it was done.
What happened? Thelma death occurred in Ohio. The neighbors, who were named as Executors in Thelma’s will, opened an estate in Probate Court and sold the house. The mortgage was paid at closing and the balance was deposited in the estate account. The Ohio statute for the payment of claims controlled for the other debts.
By statute, the costs of the estate’s administration (filing fees, attorney fees and executor’s commission) were paid first. Next, by statute, the funeral was paid from the proceeds. The funeral had been arranged with the limits imposed by the statute in mind.
Little was left. A notice of insolvency was filed with the Probate Court and creditors were notified of a hearing. None showed up. The creditors then got a pro-rata share of what was left. They ended up with pennies on the dollar, sometimes on the thousands of dollars.
What could have been done differently? Thelma could have pre-arranged her funeral. This would have saved the hassle and even embarrassment that followed her death. It was especially important in light of the fact that she was not close to her extended family.
Life presents some tough decisions. Some people choose not to do anything on the theory that they won’t be around to have to deal with it. It is a poor choice.
If you need to talk with someone about a situation like this or if you simply need help with a guardianship, estate planning, or estate admininstration contact the attorneys at Mularski, Bonham, Dittmer, & Phillips, LLC. at (614) 478-8020!