Legal Question in Wills and Trusts in New York

Re: Paying a debt after death

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The debt is considered an asset of the "party's" estate. Unless terms were agreed upon at the time the loan was made, it would become due in full.

Re: Paying a debt after death

Death of the creditor does not change your obligation. Only the recipient of the payments changes.

You wil pay the Executor (if there is a Will) or Administrator (if there is no Will), as the case may be.

If there are no written terms of payment, the amount will be due on demand. You can negotiate a plan of payment with the Executor or Administrator.

Re: Paying a debt after death

I agree with Arnold and Norman. The debt stands, as part of the estate, but the payee is changed to the estate or an heir, if the obligation winds up being distributed as part of the estate. The debt remains payable pursuant to its terms, although you can negotiate the repayment terms if the payee agrees. If the current creditor is competent, although ill, you might want to negotiate new terms now, and put them in writing, so the estate is bound by any changes.