I have previously blogged about rapper Nate Dogg
and the financial issues surrounding his estate. He died in 2011
without a will but with 6 children of unascertainable ages and different
mothers and unpaid child support and medical bills of $290K. His
primary asset was a house with $200K of equity. The administrator of
his estate has a contract to sell the house for $340,000 but his children are opposing the sale because it will not leave them enough money.
Several points:
1.
A decedent's debts must be paid before estate beneficiaries receive any
proceeds of the estate. It is unfortunate for his children that there
will likely be no assets left for them after the payment of debts, but
an administrator cannot magically make a house worth more than the
market is willing to pay nor make the debts less.
2. If Mr. Dogg
had wanted to provide for his children and not worry about his debts, he
could have purchased a life insurance policy to benefit them.
3. His house was worth $340K? I doubt it was featured on MTV's "Cribs."
