Legal Question in Wills and Trusts in Pennsylvania

Satisfying Debts of a Testator

If my spouse and I name contingent beneficiaries on all our assets (i.e. real estate, life insurance, pension, savings, etc.), how will our debts, such as credit cards and auto loans, be satisfied after we die? Can we specify that our debts be satisfied out of life insurance left to one or more of the contingent beneficiaries?


Asked on 9/08/00, 11:33 pm

1 Answer from Attorneys
Murray Eckell Eckell,Sparks,Levy, Auerbach,Monte,Rainer,&Sloane

Re: Satisfying Debts of a Testator

You cannot name a beneficiary to regular accounts, real estate and most other assets. There is nothing to compel insurance beneficiaries to pay debts.. You are obviously trying to avoid probate, which in Pa. is a very inexpensive process. You have been given incorrect information. If you make bank accounts, joint you will still have to file and pay Pa. Inheritance tax and Federal tax too depending on the size of your estate. You really need the help of a lawyer, which is not very expensive. If you call me , I will be happy to answer your questions about fees. No charge for the call. Murray S. Eckell 610 565-3700 x242

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Answered on 10/10/00, 8:56 am


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