Legal Question in Wills and Trusts in New York

Re: Payment of debt after death?

I agree with Michael. If your father incurred a debt, his estate is responsible for its repayment, including any unpaid interest if any is due. The fact that the surviving family may receive less than they anticipated, even if the father acted irrationally, does not make them personally responsible unless either they personally guaranteed its repayment, or personally benefitted from it (such as if a father took a home equity loan to assist a child buying a house). Sounds to me that you are refusing to recognize the debt, but want all of the estate benefits, and the creditor should eat the loss of repayment. Wouldn't it be nice if when we died all of our debts would be eliminated.

Re: Payment of debt after death?

I think you are confused.

First, if someone refuses to pay a debt, that individual does not go to jail. Instead, he or she is subject to the collection laws. Sometimes a debt can never be collected.

Second, if someone dies the family is not sentenced to the payment of the debt. The decedent's estate is responsible for the debt. If the decedent died penniless, then the estate has no money to satisfy its debt. The surviving relative is not responsible unless he or she guaranteed payment of the debt.

Mike