Legal Question in Wills and Trusts in New York

That is correct, and, unless you are the beneficiary of a greater amount, you are obligated to repay the money.

That is assuming there is evidence of the debt.

I agree with Arnold, but add the following. If you are the sole heir, so you will only be inheriting you own money, this might not be necessary. While there may be a legal basis under which the estate cannot collect it from you (for example, the estate cannot prove you owe it), there is still the moral obligation to the other heirs to repay it. Of course, if you have something that says all debts owed dad are forgiven if he dies before payment, this legally and morally should end it.