A relative recently passed away and left no will. There is no wife or children, both parents survive. Home is underwater. Has a 401k with be...

Question

A relative recently passed away and left no will. There is no wife or children, both parents survive. Home is underwater. Has a 401k with beneficiary and retirement account, also with beneficiary. Need info on how to close accounts and who is responsible for any debts. Can personal property be sold ie. car and furniture without a court appointed administrator?

Answer

Sorry for your loss.

The accounts with beneficiaries should be distributed to the beneficiaries by sending a death certificate to the holders of the accounts. They will most likely require additional paperwork.

Since the decedent owned real property, even though there is no equity, you technically cannot do anything with any assets that are in the decedent's name alone without a named beneficiary. What is the fair market value of the real property?

If the assets are distributed to anyone without a full probate proceeding, then the recipients of those assets are responsible for the decedent's debts. A probate proceeding will address the debts before anything is distributed.