QUESTION
Is it legal to delay initiating probate so as to complete bankruptcy?
Asked on Nov 22nd, 2016 on Bankruptcy - New York
More details to this question:
A died in 2011. Her will named a friend, B, as executor with A's sister, C, as backup. B and C shared equally as beneficiaries. B died before A leaving C as executor and sole beneficiary. C declared bankruptcy in late 2014 and it was finalized in Jan 2015. It appears that C waited until bankruptcy was completed to initiate probate of A's estate. Is this legal? Now C has died and her kids (heirs) are petitioning to become the executors and hassling the living siblings of A & C to sign "Renunciation of Letters of Administration c.t.a." and "Waiver of Process". They are hesitant because A promised to include them in her will which she did not and the belief that C may have done something shady if not illegal by waiting until her bankruptcy was complete before initiating probate.
1 ANSWER
1 Award
C did do something shady, but it was smart, and assured her creditors did not get any money. The issues really have nothing to do with the present issue. C's estate still gets A's property and not signing the waiver will make no difference to the people being asked to sign. Under law, the fiduciary of the fiduciary's estate is the presumptive CTA, but the court needs to approve it, which is why the forms need to be signed by all interested parties.
Answered on Nov 24th, 2016 at 7:25 AM