When a loved one passes away, you may be overcome with grief. Unfortunately, matters can be made even more difficult when you learn that you are the Executor of their estate, as there are a number of important matters you are responsible for. One such issue many fail to consider is what happens if the deceased is owed a debt. If you are unsure of your options or how to navigate these matters, you’ll want to continue reading. The following blog explores what you should know about these circumstances, including the importance of discussing your legal options with a Medina, Ohio estate planning lawyer.
Can I Collect Debt Owed to the Deceased?
If your loved one passes away but they were owed a debt, you may incorrectly assume this obligation dies with them. However, this is far from the truth. In reality, if your loved one was owed a debt, the estate is still eligible to collect the funds they were owed.
When your loved one passes away, you must endure the Probate process. This is a complicated matter in which the Will is submitted to and validated by the Probate court, which will then oversee the distribution of the deceased’s estate. In addition, they will appoint an Executor, who is responsible for handling the estate, in accordance with the Will. As such, once an Executor has been named, they are eligible to act on behalf of the estate, which includes recovering any outstanding debts owed to the deceased. If the debtor is on a repayment plan at the time of the deceased’s passing, it is the responsibility of the Executor to ensure they are current on their payments and continue monitoring payments.
It’s important to ensure as the executor, you examine all records kept by the deceased to look for any outstanding debts they owed. This includes financial documents, ledgers, and even emails. These can be used as evidence to help collect the funds owed to the estate.
What Happens to Debts Owed by the Deceased?
On the other hand, you may wonder what happens to the debts the deceased owed before their passing. Just like debts they are owed, you are responsible for paying any outstanding bills. As such, creditors will receive notice of the death of the estate head and can submit claims for the funds they are owed. The executor must pay any outstanding debts from the estate before they can begin distributing the remaining assets to the Beneficiaries in accordance with the Will.
Unfortunately, navigating the aftermath of someone’s death can be incredibly difficult, especially if you are the Executor of their estate. As such, it’s in your best interest to connect with an experienced attorney at Krause Law to help you navigate these difficult matters. When you need assistance, do not hesitate to contact our experienced team today.
