Legal Question in Wills and Trusts in New York

Re: Outstanding bills for deceased parent

Yes, yes, yes. If the bill was outstanding and legitimate, it was an estate obligation, payable by the executor. If the funds have been dibursed, I presume that Refunding Bonds and Releases were signed by all distributees, so the estate proceedings could be closed. These documents should have provided that the recipients agree to reimburse their share of the distribution to the executor if a legitimate bill was presented after the final distribution. Regardless, if there is no money, the creditor can sue the estate and the heirs and follow the distributions to satisfy the debt. In this suit, they need not seek pro rata contribution, but can collect against any heir. I suggest the executor explain the situation to the heirs and get reimbursed the pro rata share from each heir.

Re: Outstanding bills for deceased parent

You have my condolences for your loss.

Regarding the legal issues, this is an interesting question for several reasons.

1) Medical expenses are not like other liabilities. The creditor does not have the right to bring an action for medical expenses in all circumstances. What happened to medicaid? What did they pay?

2) Assuming the estate was distributed only after a reasonable period of time, there is the issue that the hospital may have waited too long and lost the right to bring an action. If the hospital was lax and waited for the executor's bond to lapse, they may have waited too long. Was the executor an attorney?

3) What does the report to the court say about this liability?

I have more questions for you than answers, but the hospital may have a hard time collecting any money from any heir.

You are welcome to a consultation for no fee.