Small Estate Affidavit
Daughter passed away suddenly
with no beneficiary form filed.
She lived at home w/parents, no
spouse, no children. Parents filed Small Est.Affidavit for 401K and possible pension.
Do her creditors have legal right to be paid from 401K & Life Ins. over her heirs(parents&siblings)?
Re: Small Estate Affidavit
The answer is: maybe.
You will need to look at the company's plan documents to see who the default beneficiary is on the plans. However, usually it is the estate of the individual if the person was not married.
If the funds go to the estate, the creditors will have to file claims with the administrator (the person acting under the small estate affidavit) and you will have to ascertain whether they are valid claims that need to be paid.
You should sit down with a probate or estate planning attorney who can review the documents for you, explain your rights, and advise on how best to proceed. It will be worth your time, money, and peace of mind to have this information.
Good luck to you.
