Legal Question in Wills and Trusts in New York

Re: Debts of the estate.

The assets of the estate are all of the assets, such as bank accounts, personal property, a house, etc. Just because there is insufficient cash to pay bills, other assets could be sold to provide the funds to pay debts, such as selling the house to you. Thus, if the creditors were to sue for collection, a judgment would be a lien against ALL estate assets, to be satisfied on their liquidation/sale. The purpose of the probate is to make the Will valid and to appoint an estate representative to act on behalf of the estate, to carry out the terms of the Will, which would include the payment of debts and sale of the house. Once appointed, the estate representative would have authority to speak with the creditors in an attempt to compromise and settle the debts. If the house passes under the Will, or is covered by it, it is an asset the creditors could reach to satisfy their claims.

Re: Debts of the estate.

Any debts of the decedent are paid from the assets of the estate.

Here, when the house is sold by the estate to you, the debts will be paid from the proceeds.

Ifv the assets are insufficient to pay debts, the creditor is out of luck, just as if you declare bankruptcy, and your remaining assets are distributed to your creditors.

Re: Debts of the estate.

If the estate's debts exceed its assets, then the creditors have no recourse. If you purchase the house from the estate, then the proceeds of from sale are used to pay off the estate's debts. With a good estate attorney, you can obtain letters testamentary (the first step of probate) within 2-3 weeks. You need to probate the will, regardless of estate value or the existence of contesting parties, if there are assets in the name of the deceased (such as the real estate you mentioned). Probate entails proving the validity and authenticty of the will to the court. Once proven, the court authorizes the executor to handle estate matters untill all assets are transfered to the beneficiaries.

You should contact a compentent estate attorney to assist you in this matter. Feel free to contact my office for a free consultation.