Legal Question in Credit and Debt Law in New Jersey

Re: inheritance law regarding debt

The debts represent claims against the decedent's estate. When the estate goes through probate, all persons who have claims against the decedent must file claims against the estate. If the debts are disputed, they can then be settled between the creditors and the executor of the estate, or if necessary, litigated and decided by a judge.

If the debts exceed the assets of the estate, the heirs and legatees do not "inherit" a responsibility to pay off the debts. They simply receive nothing from the estate.

If any of the heirs or legatees have agreed to be responsible for the decedent's debts, i.e. as a co-signer of a loan for example, then they will still be responsible to pay the debt, but this is due to the voluntary agreement they made, not because they happen to be heirs or legatees.

Re: inheritance law regarding debt

In lay terms (regular English) the answer is NO ONE INHERITS the debt. When a person dies, his property is supposed to be used to pay off debts. To do this a proceeding has to be started in the Surrogates Court. If there is no proceeding there is no mechanism to turn the property into cash and pay off the dead person's debts. Basically the debts will "go away"

Re: inheritance law regarding debt

his estate