How to Handle a Decedent's Uninsured Medical Expenses
Read the decedent’s will., Make an accurate accounting of estate assets., Pay the decedent’s uninsured medical expenses.
Step-by-Step Guide
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Step 1: Read the decedent’s will.
When the decedent has a will, their property will be placed in a legal entity called an estate.
The estate's value will be increased or decreased based on creditor claims and asset accumulation.
As the estate administrator, it is your duty to collect estate assets and tally up valid debt claims.It is important to read the will so you can understand what assets will be a part of the estate and how the decedent wants the assets handled.
For example, the decedent might pass most of their property outside of the probate process, which means the estate will not include those assets.
Also, the will might direct you about the manner in which assets should be used to pay debts, including uninsured medical debts.
Some wills might state that cash, bank accounts, and securities should be used first to pay off debts.
The will might also state that real property should be the last thing liquidated to pay for outstanding debt.
Make sure you understand the wishes of the decedent and follow their directions as best as possible. -
Step 2: Make an accurate accounting of estate assets.
Once you understand the wishes of the decedent, you need to account for all of the estate's assets so you know what is available to pay for outstanding debts.
When you make an accounting of estate assets, you need to calculate the dollar value of each of those assets.
Once you calculate the dollar value of each asset, you will add them together to get the total value of the estate.
If the estate's asset values exceed the value of the estate's debts, the estate is considered solvent.Some assets can be easily valued.
For example, if the decedent left a bank account behind, its value will simply be the amount of money left in the account.
However, other assets can be more difficult to value.
For example, if the decedent left personal property (e.g., home furnishings and kitchenware), you might have to have the property appraised in order to determine its fair market value. , Because uninsured medical expenses will be considered an estate debt, it will need to be paid with assets from the estate.
If the decedent's estate is solvent, you can pay the medical debt whenever you wish.
If you know the estate will be solvent and the medical expenses are relatively small, you might consider paying the debt early to get it out of the way.
However, if you are not sure whether the estate will be solvent and the medical debt is large, you might wait to pay the debt until you are sure you have enough money to pay all the debts. -
Step 3: Pay the decedent’s uninsured medical expenses.
Detailed Guide
When the decedent has a will, their property will be placed in a legal entity called an estate.
The estate's value will be increased or decreased based on creditor claims and asset accumulation.
As the estate administrator, it is your duty to collect estate assets and tally up valid debt claims.It is important to read the will so you can understand what assets will be a part of the estate and how the decedent wants the assets handled.
For example, the decedent might pass most of their property outside of the probate process, which means the estate will not include those assets.
Also, the will might direct you about the manner in which assets should be used to pay debts, including uninsured medical debts.
Some wills might state that cash, bank accounts, and securities should be used first to pay off debts.
The will might also state that real property should be the last thing liquidated to pay for outstanding debt.
Make sure you understand the wishes of the decedent and follow their directions as best as possible.
Once you understand the wishes of the decedent, you need to account for all of the estate's assets so you know what is available to pay for outstanding debts.
When you make an accounting of estate assets, you need to calculate the dollar value of each of those assets.
Once you calculate the dollar value of each asset, you will add them together to get the total value of the estate.
If the estate's asset values exceed the value of the estate's debts, the estate is considered solvent.Some assets can be easily valued.
For example, if the decedent left a bank account behind, its value will simply be the amount of money left in the account.
However, other assets can be more difficult to value.
For example, if the decedent left personal property (e.g., home furnishings and kitchenware), you might have to have the property appraised in order to determine its fair market value. , Because uninsured medical expenses will be considered an estate debt, it will need to be paid with assets from the estate.
If the decedent's estate is solvent, you can pay the medical debt whenever you wish.
If you know the estate will be solvent and the medical expenses are relatively small, you might consider paying the debt early to get it out of the way.
However, if you are not sure whether the estate will be solvent and the medical debt is large, you might wait to pay the debt until you are sure you have enough money to pay all the debts.
About the Author
Linda Anderson
Brings years of experience writing about hobbies and related subjects.
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