Before an estate can be distributed, do all debts need to be settled even if the debt is to the heirs?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Before an estate can be distributed, do all debts need to be settled even if the debt is to the heirs?
Asked on October 16, 2012 under Estate Planning, Nebraska
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
I am so sorry for your loss. Generally speaking, yes, all debts of the estate must be settled prior to distribution by the Personal Representative. That includes debts to state and Federal authorities (I.e., Tax Returns for the estate and personally for the decedent if they were to file in the year that they passed). Now, there are methods for formally making a claim as a debtor in the estate and it is advised that you do so even if you are an heir (beneficiary) as you state. Otherwise the claim can be lost. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.