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.
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.”