After a person passes away leaving behind great wealth, the unexpected gain of inheritance makes the beneficiaries financially more sound, which we all love to be. On the flip side, if someone dies with a huge debt leaving behind, that becomes a headache for the successors. In fact, some creditors try to obtain the dues from the beneficiaries illegally. In this article, we will discuss how the dues can impact probate and the right method to pay the creditors as well as other outstanding after the death of the debtor. Since this is not a process we are familiar with, and we deal in our day to day lives, a probate Brooklyn lawyer can guide us properly.
Are You Payable To The Debtor Of The Deceased As His Beneficiary? Ask Your Probate Brooklyn Lawyer
How would it be if the deceased can take all his debts with him/her and leave behind the assets for his heirs to enjoy? It would never be possible. Then how will you deal with the debt collectors of the elderly person after his/her demise, who are calling you days and nights to get back their dues? This is unquestionably a critical situation. My first suggestion for you would be to hire a highly experienced probate Brooklyn lawyer. He/she is the appropriate person to guide you and get you out of this difficult situation.
An expert in this domain will make you aware of the law and how you should act to come out of it. The intestacy law clearly states that the relatives are not responsible for any of the debts of the deceased. This holds true unless there is a joint application of loan or credit card. And the property or the business with debt should have joint ownership.
What about Other Debts?
Other debts fall into the deceased person’s estate and will be recovered from the estate fund. The situation becomes a little unpleasant for those who are in line for inheritance. There will be less inheritance if the asset is enough to pay off the debts.
Although the law is there to protect the dependent family members from this dreadful circumstance, many of us are not well aware of the state law. Thus, we become puzzled about how to handle it and bring back peace to our lives. When a creditor wants us to pay the debts on behalf of the deceased, we are in distress. We suffer a lot because we don’t know the views of the legal structure on it.
The surrogate’s court website maintains a guide for the surviving family members of the deceased person, clearly mentioning their rights and responsibilities in this specific scenario. The law states that apart from some certain instances where the debt is co-owned, the family members don’t have to pay the debt for the person who has died.
Try To Know the Role of Executor or Personal Representative from the Probate Brooklyn Lawyer
Typically, the debts are paid from the estate fund of the dead person before they are transferred to the beneficiaries. An estate refers to all an individual’s assets taken together. It includes everything he possessed, for instance, house, land, vehicles, jewelry, bank accounts, insurance policies, stocks, bonds, business everything from where you will get money directly, or by selling the asset.
When a person dies owing to unclear debt, his/her money or assets are used to pay off the debt. The attorney or the personal representative pays the debts on behalf of the deceased person as he/she is in charge of the estate by the court’s order during probate.
Can Every Asset Be Sold To Pay Off The Creditors?
You cannot capture all of the estate to cover the debts. The asset is primarily of two categories, exempt and non-exempt.
You cannot make use of the exempt assets for paying off debts. The enlisted asset in the exempt category varies from one state to another. However, the two major assets, insurance policies and retirement benefits, are generally considered as exempt. The beneficiaries inherit those assets regardless of the debts.
How to Pay Off the Pending Taxes?
One needs to clear the taxes until the year of death of the individual. The tax might be for real estate, income, a business company or others. All taxes are to be made from the estate fund.
What If The Estate Is Insolvent?
This means the amount of debt is greater than assets, which happen quite rarely. In such a condition, the beneficiaries neither receive any inheritance nor need to bear the responsibility of paying off any debts.
