What happens if you don't have enough money when you die?
When you make your will, you can’t know exactly how much money you will have to distribute when you die.
You might have a lot more than you do now, or you might have less.
So, what happens if you make a will now leaving “$400,000 to my daughter Donna” and “$200,000 to my brother Ian” but only have $300,000 when you die? Does Donna get the lot?
Unfortunately for Donna, but luckily for Ian, the answer is no.
First, your executor must pay your funeral and testamentary expenses out of the money you have left in your estate. Then, your executor must pay all secured and then unsecured creditors like your credit card bills and all outstanding debts before any legacy is paid to Donna or Ian.
If your funeral expenses and your debts require $30,000 to be paid from your estate, your executor would have $270,000 left.
Since your intention was that Donna would receive twice as much as Ian, Donna would then be paid $180,000 and Ian would receive $90,000.
It is not unusual for complicated situations to arise when a will is being administered. If you need help to make your will clear and uncomplicated, or assistance in administering an estate, call us on 544 77 637 or email Jessica Popple at email@example.com.