Legal Question in Wills and Trusts in New York
Living Spouse's finanacial responsibility for Deceased'sDebt
In the state of NY what is the law regarding the financial responsibility of a living spouse upon the death of the other.Such as payment of debt etc.All credit is in seperate names, living spouse has always used maiden name.No joint accounts currently held. Bills paid 50-50 out of independent nonlinked bank accounts.Basically, neither party has ever had a say in what the other person spends money on.Living spouse doesn't want to get stuck with the others debt. Estate of deceased does not have any money in bank, except 401k, and pensions with spouse as benificiary. What consitutes an estate?Does it include the value of vehicles etc. and do these have to be liquidated if the person dies without a will?
1 Answer from Attorneys
Re: Living Spouse's finanacial responsibility for Deceased'sDebt
The estate of the decedent, and not his spouse, is responsible for the payment of debts.
For these purposes the estate consists of only the property owned individually by the decedent, such as the car.
The 401 K plan, the qualified pension plan and the life insurance, if any, cannot be reached by the creditors of the decedent.
The car can be sold, transferred to the surviving spouse, but alway subject to the prior claims of the creditors of the decedent and professionals hired to administer the estate.
The other estate is the taxable estate, and it is broader. The car, the 401 k and pension plans and life insurance are included in this "estate".
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