Legal Question in Wills and Trusts in New York

Re: Debt owed to estate

The unsigned will might have been construed as some basis, although weak, to establish foregiveness; however the dementia at the time of preparation wrecks that theory.

From what you have described, the debt is collectible by the Executor.

Re: Debt owed to estate

I concur with Norman in general. However, I am confused by your statement as to the term "last payment". Does this mean the last payment you made or the final payment on repayment of the debt? If the latter, no balance is owed. If the former, you owe the balance. If you are an heir of the estate, rather than repayment to the estate, you might consider receiving your note as part of your distribution from the estate, as you would share in the repayment anyway. This would be a merger of the debt and your estate distribution, which would cancel the debt without income tax consequences. Had mom just forgiven the debt, without declaring it was extinguished as a gift to you, rather than pure forgiveness, you might have an income tax liability on the foregiveness. I would need more information to give you a better answer.