Legal Question in Wills and Trusts in Pennsylvania
Responsibility of debt for husband's business.
I have been married for three years. Prior to marriage my fiance at that time changed his will to name me as sole beneficiary.(He was going through a long divorce.) Since our marriage, he has not changed his will. He is he owner of an s-corp which has a negative worth of -75,000. What are the legal ramifications to me should he die? Am I responsible for this debt? He also has a sole proprietorship which is making payments on eleven trucks and vehicles. Will I be responsible for these payments? My husband is facing surgery in two weeks and has been in severe pain and I am having a hard time discussing this matter with him because of his physical condition. Please advise.
1 Answer from Attorneys
Re: Responsibility of debt for husband's business.
Short answer is YOU are NOT responsible for your husband's debts assuming you did NOT act as a co-signer or co-borrower. However, please read on.
All the debts your husband has go to his estate as do his assets. It not uncommon for an estate to be insolvant. If that turns out to be the case the effect is the creditors get paid out of what assets there are. You would get nothing but would not owe the creditors anything. They can't come back and demand you pay.
You say your husband's S-Corp has a negative net worth of $75,000. Is that all actual money owed or does that include depreciation and other non-cash write downs.
The next question is with all those trucks are they worth more than what is owed on them?
Feel free to email me at the address below. The initial consultation is free.
{John}
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