Legal Question in Wills and Trusts in New Jersey
Payment of debts from estate.
What happens when the amount of money in an estate after funeral expenses are paid is not enough to pay the debts owed by the decedent. Must the creditors accept an equitable distribution in proportion to the debt? May a creditor charge interest until the debt is settled?
Asked on 2/17/03, 2:58 pm
1 Answer from Attorneys
Walter LeVine
Walter D. LeVine, Esq.
Re: Payment of debts from estate.
If the assets remaining are insufficient, you must contact the creditors and try to settle ratably. They are not compelled to do this, so some can refuse. You might need a court order to effect a ratable payment if all do not agree. This assumes none of the creditors have a superior position to others.
Answered on 2/17/03, 11:45 pm
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