Legal Question in Credit and Debt Law in New York
Inheritance and outstanding debt
My husband has an inheritance coming from the sale of his parent's home. It is to be split among him and his 3 siblings.
We also have outstanding credit card debt. We got a call from a recovery service telling us to tell them the name of the executor of his parent's estate.
We have just fallen a month behind and feel confident we will catch up. In the meantime, can they put a lien on our inheritance or the estate before it is sold? Can this debt prevent everyone getting their monies?
Thank you for your advice.
2 Answers from Attorneys
Re: Inheritance and outstanding debt
As a creditor of a beneificiary they cannot hold up the estate distribution.
Re: Inheritance and outstanding debt
The legal issue is 'standing'. They have a right to put a lien on the inheritance. that means they could require the executor pay them before you. They have no other rights.
They have no 'standing' to take any action about the inheritance, the distribution, or anything else except to direct the executor to pay thyem first.