Legal Question in Wills and Trusts in Nevada

Re: Deceased's Debts

No, the heirs of a deceased are not liable for the debts of the decedent. The estate is liable and the creditors have 4 months to file a claim against the estate after notice to creditors is published in the legal newspaper. If there are not sufficient assets in the estate to pay the debts, taxes, medical expenses, funeral expenses, etc., then the creditors get whatever they can get from the assets of the decedent's estate, and the estate is closed. The heirs get nothing.

Re: Deceased's Debts

The beneficiary as beneficiary has no liability for the debt of the decedent.

There are, however, two complications. The estate executor is legally obligated to advise the court of any of the debts of the decedent (and may be required to give notice of the estate for the benefit of creditors, depending upon the size of the estate.)If the estate is small the court may defeat the creditors in favor of a surviving spouse and minor children who need support.

The second complication is if the debt it attached to the property. For example, if the beneficiary gets a house with a mortgage, the mortgage doesn't go away because the owner dies. The beneficiary can refuse the house and mortgage. But, the beneficiary can only get the house minus the mortgage amount (or the house and the mortgage if the beneficiary wants to take over the mortgage and the lender agrees.)

Re: Deceased's Debts

Mr. Scher has advised correctly regarding the law in Arizona. If the deceased person was a resident of Nevada, you should check with an attorney who is licensed in Nevada. (I don't know whether Mr. Scher is licensed in Nevada or not.) That said, it is pretty standard that the estate of the decedent must pay the decedent's medical expenses, funeral and burial or cremation expenses, creditors, final taxes, and the costs of administration. The beneficiaries will get whatever is left. The beneficiaries should not have to take money out of their own pocket to pay the debts of the deceased person.