Legal Question in Wills and Trusts in Nebraska

Re: inherited financial obligations?

1. No, you do not inherit their debt.

2. If the debt cannot be paid from the assets of the estate, it generally remains unpaid and the creditors don't get paid.

3. Just because you're the oldest doesn't mean you're automatically the executor. Your parents will may name an executor or the court may appoint one. Regardless, if you do not want to be executor, you cannot be forced to be executor.

4. Protect yourself by not co-signing or otherwise agreeing to pay their debts.

Hope that helps.

Re: inherited financial obligations?

1. If they die to I inherit that debt?

No. However, see below. ALSO note that debt collectors and creditors may HARASS you, LIE to you, badger you, and insist that you pay. THEY MIGHT LIE TO YOU. IGNORE THEM. (Never ignore a court date, obviously, I mean calls and letters from debt collectors.)

2. If their estate does not cover their debt, who pays it?

No one. It goes unpaid. However, this could consume any assets that might otherwise go to you. Anything they own at their death can be used to pay your parents' debt.

3. Since I am the oldest I would be the executer. Can I pass that obligation on to my brother?

I don't understand. Can your brother be executor? Yes, of course. However, we are now talking about the laws of a different state, not Virginia. The law where your parents die will control their estate and their will. The other questions affect you in Virginia under Virginia law. I am not licensed to give you an opinion under the laws of any other state. However, I am not aware of any obligation for you to be executor. My understanding that anyone can be executor, not just the older brother.

4. How can I protect myself from incurring their debts?

There are situations which could cause you to become liable for your parents' debts after their death.

Mainly, if you benefit from the debt you could become liable for it. But that is a very direct type of benefit. Example: You live with them and the gas account is in their name. Your name is not on the gas account. But you also use the gas, because you live there. The gas company could sue you for something like "unjust enrichment" and make you pay for the value of the gas that you actually consumed.

Similarly, you and your parents go on a vacation together. Your parents put all of it on their credit card and then die. If you received the direct benefit of some of that debt, you might have to pay your fair share of that debt.

Also, make sure that your name is not on any account with them jointly that involves a debt.