I live in Indiana but estate is in Kentucky.

My brother-in-law passed away 1-15-06. He was going through a bankruptcy in Indiana but, he resided in Kentucky. (He lived in Indiana when he filed bankruptcy.) His estate is very small, mostly debt. There is not any real estate but there are a couple of vehicles. One is involved in the bankruptcy. He has a couple outstanding credit cards with low balances and a couple bank accounts. He has several medical bills. He was getting his affairs in order but passed away before he could complete them.

He has left two adult daughters behind and they have asked that I handle their Dad's estate. One is 18 years old the other is 37. So far everyone involved agrees that his wishes be carried out but, he left no will but, we were all close and we know what he wanted done.

I am told that the bankruptcy must be cleared up first before this estate could go to probate. I have also been told that because the estate is so small, we could probably avoid probate all together. All of this is new to me and I am learning as I go. There was one life insurance policy but most of it will be used to bury him. He did not name a beneficiary for the life insurance so both girls will split what is left after the funeral expenses. He also had a small 401K and he did name one daughter as beneficiary. I am under the impression that these are not included in the estate. Any advise on how to handle this would be appreciated. Thanks.