My mother-in-law passed away last month and I was a signer on a $23,000 cd. Now, what do I do with the money so that I can pay her bills until the estate is all settled. Right now, it's in my checking account under another account number for tracking purposes, paying zero interest (I wasn't sure if the interest would affect me) Her money will be split 6 ways after all is settled with a value under 75,000. Yes, I am in charge of her estate in her personal will.

First, how much debt did she leave. Second were you on the account as joint tenant with right of survivorship? Third was it her wish to give you that money or that it be included in the distributed estate? Are you saying her total estate was worth $75K? Is that all cash?

P.S. Please do not cross post, I've asked that your other post be deleted.

Monthly bills are the only ones due (rent, electricity, water, insurance on manufactured home) around 700 a month. Luckily, no other debt. The only account I was a signer on was the certificate. On the 13th this month, it will be 30 days since her passing, and I will be issued executor of her state through documents submitted to the court. (It is stated in her will that I was in charge of everything, but this is not good enough for the bank and life insurance. It was her wish that ALL her money be split 6 ways between myself and her five sons. The estate total worth is the 22,800 I have in a checking account, 29,000 life insurance not awarded yet and the sale of her home 25,000 to 33,000 when sold.

Ok, first Did she name a beneficiary on the insurance policy. If so, that amount is NOT part of the estate and goes to the named beneficiary. If that person wants to share it, that's their prerogative.

Second, it shouldn't have been necessary to probate it it, but not that you have started there is no turning back. You should establish an estate checking account in the name of the estate. All bills should be paid out of that. Since there are no other debts you are just maintaining the home until it can be sold.

I did not know about cross posting, sorry.. I wasn't sure which venue to post with to get a proper response. As for the county court, I was not officially appointed executor of the state, just mentioned in the will. So, I have to send in a form naming me as one. That is why I mentioned the court system. The life insurance company is meeting with my husband and I tomorrow, so I will have an answer about whom the beneficiary is. Thank you for answering my question so quickly.

Yes you need to get yourself named as executor so you can open an account and sign checks on behalf of the estate

OK, you never did answer the CD issue, if you were joint owner with right of survial, then it is not part of the estate, it is just your money.
I am on several CDs that my mom has, when she dies I am just the new owner by myself, no esate, no probate on it.

As for the life insurance, if it names a benificiary, and they get the money, it is not part of the estate either. They just get the money.

If you do have money that belongs to the estate, you open a new bank account called the ESTATE of >>>>>>( persons name) And pay bills form that. YOU do not ever co-mix your personal money and estate money in the same bank account, that is even against the law in some places.

And you only pay her bills from the money of the estate, so be sure you have estate money, you may not.

Chuck is correct. Even though you consider this money for the estate, if you were a joint tenant on the CD with right of survivorship then its NOT estate money and you don't want to use it for the estate.

If there was a beneficiary on the life insurance then that is THEIR money. If they choose to distribute as your MIL wished, then they will be GIFTING their money to the heirs with the tax consequences of such an action. The same for the money in the CD.

Yes, I was the co-name on her cd, but I know her request was to have the money distributed evenly. Even if we find out tomorrow that one of the son's was the beneficiary of her life insurance, I'm pretty sure they too would distribute the money evenly. But, thank you for the info on the GIFT tax. One of the son's asked about the estate money and was told that if it were under 100,000 we did not have to worry about being taxed on it. I personally am a little worried and will consult with my tax person in April. But, I really appreciate all the information you have provided and will set up a new Estate of Mom account tomorrow. Thank you, I have already told a few people today about how great this web site is. Keep up and god bless!

You have to look at the EXACT wording of how the CD was held. "Co-name" is not a technical term. Its great that everyone isn't being greedy and will share in what funds there were. It true that estate is exempt form taxes up to more than $1 million. But your problem is that not all the funds you want to distribute are in the estate. Definitely, anything paid from the insurance to the policy beneficiary is outside the estate. If you were a joint tenant with right of survivorship, then the CD is outside the estate. So you need to be careful how those funds are distributed to avoid taxation.