Can the Executor or Creditors sue me for debts of the Estate of my Brother in Virginia?
I live in Pa. my brother lived in Va. He passed away over a year ago, and I was the beneficiary of his life insurance policy, which I used to pay all his funeral and burial costs. There is a small amount left. The executor of his will received all the rest of his possessions, which included a house, car, bank account, and all his personal belongings. My brother was very ill. He left many medical bills. A year has gone by, and the executor of the will is trying to sell the home to his significant other, and cannot do so because of the medical bills. He said that because I am an heir, I am liable for these medical bills. Is this so?11/05/2016 | Category: Wills and Es... » Creditors of... | State: Virginia | #26215
The section below allows suit against an heir "for which the estate descended or devised is liable, or for which the heir or devisee is liable with regard to such estate." The section below is found in the Code of Virgina under "Liability of Real Estate for Debts". See http://law.lis.virginia.gov/vacode/title64.2/chapter5/ You should read any other applicable sections not provided here.
64.2-536. Liability of heir or devisee; action by personal representative or creditor; recording notice of lis pendens; evidence.
An heir or devisee may be sued by the personal representative or any creditor to whom a claim is due for which the estate descended or devised is liable, or for which the heir or devisee is liable with regard to such estate. Any judgment for such a claim entered against the personal representative of the decedent is prima facie evidence of the claim against the heir or devisee in a suit against the heir or devisee by the personal representative or any creditor. In any suit by the personal representative or any creditor pursuant to this article, he shall record a notice of lis pendens as required by § 8.01-268 at the time of filing such suit. The personal representative or creditor has the burden to show to the satisfaction of the court that there are not sufficient personal assets in the estate to satisfy all claims against the estate. Code 1950, § 64-174; 1968, cc. 515, 656, § 64.1-185; 2012, c. 614.
64.2-534. Liability of heir or devisee for value of real estate sold and conveyed; validity of premature conveyances.
A. Any heir or devisee who sells and conveys any real estate that is an asset for the payment of a decedent's debts or lawful demands against his estate pursuant to § 64.2-532 is liable for the value of such real estate, with interest, to those persons entitled to be paid out of the real estate.
B. Notwithstanding the provisions of subsection A, the real estate sold or conveyed is not liable to those persons entitled to be paid out of the real estate provided that (i) the sale was made more than one year after the death of the decedent, (ii) the conveyance was bona fide, and (iii) at the time of such conveyance, no action has been commenced for the administration of the real estate and no reports have been filed of the debts and demands of such creditors.
C. No sale and conveyance of such real estate made by an heir or devisee within one year after the death of the decedent is valid against creditors of such decedent, except as otherwise provided in § 64.2-535, provided that any sale and conveyance made within one year after the death of a decedent is valid against creditors as if it were made more than one year after the death of the decedent if no action has been commenced for the administration of the real estate and no report of the debts and demands has been filed within one year after the death of the decedent. Code 1950, § 64-173; 1950, p. 606; 1968, c. 656, § 64.1-183; 2012, c. 614; 2015, c. 332.
This is the order in which creditors are paid.
Title 64.2. Wills, Trusts, and Fiduciaries » Chapter 5. Personal Representatives and Administration of Estates
§ 64.2-528. Order in which debts and demands of decedents to be paid
When the assets of the decedent in his personal representative's possession are not sufficient to satisfy all debts and demands against him, they shall be applied to the payment of such debts and demands in the following order:
1. Costs and expenses of administration;
2. The allowances provided in Article 2 (§ 64.2-309 et seq.) of Chapter 3;
3. Funeral expenses not to exceed $4,000;
4. Debts and taxes with preference under federal law;
5. Medical and hospital expenses of the last illness of the decedent, including compensation of persons attending him not to exceed $2,150 for each hospital and nursing home and $425 for each person furnishing services or goods;
6. Debts and taxes due the Commonwealth;
7. Debts due as trustee for persons under disabilities; as receiver or commissioner under decree of court of the Commonwealth; as personal representative, guardian, conservator, or committee when the qualification was in the Commonwealth; and for moneys collected by anyone to the credit of another and not paid over, regardless of whether or not a bond has been executed for the faithful performance of the duties of the party so collecting such funds;
8. Debts and taxes due localities and municipal corporations of the Commonwealth; and
9. All other claims.
No preference shall be given in the payment of any claim over any other claim of the same class, and a claim due and payable shall not be entitled to a preference over a claim not due.
Code 1950, § 64-147; 1956, c. 231; 1966, c. 274; 1968, c. 656, § 64.1-157; 1972, c. 96; 1981, c. 580; 1986, c. 109; 1993, c. 259; 1996, c. 84; 1997, c. 801; 2007, c. 735; 2008, cc. 666, 817; 2012, c. 614; 2014, c. 532.
There is an amendment to this section that is proposed to be made but not yet law. Priority of debts to be paid from decedent's assets; unpaid child support. Prioritizes debts owed for unpaid child support obligations over debts and taxes due to localities and other, unenumerated claims against the estate of a decedent.
The order in which the assets of the estate are used to pay creditors is generally personal property first and real estate last.