Legal Question in Wills and Trusts in New York

IRA and debt

The deceased had an IRA with the two surviving children as beneficiaries. There seems to be no other assets. She also left a large amount of debt. Will the IRA need to be used to pay off the debts owed even though there are beneficiaries named? If there are no other assets, who is responsible for the debts?


Asked on 1/12/05, 5:50 pm

2 Answers from Attorneys
Arnold Nager Arnold H. Nager, Esquire

Re: IRA and debt

Although it would be improper to give legal advice without fully examining all of the facts in a particular matter, I will try to provide you with some general, non-specific information.

Generally, the assets of an estate are used to pay debts before any distribution is made to heirs.

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Answered on 1/14/05, 6:20 am
John O'Donnell Attorney at Law

Re: IRA and debt

It would be improper for an attorney to provide you with legal advice without having first analyzed all of the facts and circumstances of your particular matter.

However, I will try to provide you with some general information.

While it is unlikely that a creditor will take action against the beneficiaries, it may be possible under certain circumstances. The nature of the outstanding debts is one important consideration. Anohter issue is estate tax. Depending on the value of the assets, an estate tax return may need to be filed.

I would recommend that the beneficiaries counsult with an attorney.

If you need assistance, please feel free to contact me at (212) 971-1384.

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Answered on 1/12/05, 7:02 pm


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