Legal Question in Wills and Trusts in Arizona
Can not pay all debts
Can the executor of the estate be held personally responsible for debts of the deceased estate if they have agreed to assume the position of successor/trustee? Estate not able to pay all debts owed. Money owed on car and we will have to let them repossess, can they put lien on property? Executor personally responsible?
2 Answers from Attorneys
Re: Can not pay all debts
The executor (personal representative)of the estate is not liable for the debts of the estate, the executor is the administrator of the estate and duty bound to pay debts and taxes as the assets of the estate allow. You must treat all creditors of the estate equally and fairly. The tax obligations may have priority.
Re: Can not pay all debts
The executor (personal representative in Arizona) is not usually personally liable in the absence of malfeasance, but may be liable if the estate is not properly handled.
It is dangerous to let a vehicle be repossed, because they are sold at a fraction of the value and the deficiency, plus repossession charges, become a claim against the remaining assets of the estate.
You need to consult with an attorney to make sure that you and the estate are covered properly. You have a duty to the creditors and the beneficiaries of the estate to act properly and reasonably. We offer a free, no obligation consultation to review the facts of the case, advise you and aswer all questions. I would be willing to meet with you personally, at no charge, if you arrange it at 480.835.1500. It is difficult to fully advise you in the most professional manner without all facts and more detail. Due to the car issue, I advise you not to delay. Get help immediately.
Best regards,
James D. Jenkins