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What happens to the debt of a deceased person when ...

Sent to Finance Experts June 18 2007 at 6:37 AM
   

What happens to the debt of a deceased person when there is no real estate, no automobile - actually no real property to liquidate and no cash or assets?

 

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canton, Ohio

Customer (name blocked for privacy)
Status:  Closed   Value: $9
Answer
June 18 2007 at 6:56 AM (19 minutes and 7 seconds later)
         
REPLIEDCheck Mark

The debt of the deceased person should be applied to his/her estate.

The executor of the estate is responsible pay off debt before the distribution to heirs.

If there is no estate, or the estate is too small to satisfy creditors - the debt will remain unpaid.



The answer is an advisory opinion (not legal or financial advice). After accepting the answer bookmark it - you may return to this page later for reference or to ask for clarification. Appreciate your positive feedback.
Lev -- Tax Preparer -- 98% Positive Feedback on 625 Finance Accepts
Personal Investment, Tax Preparation
Reply
June 18 2007 at 7:11 AM (14 minutes and 30 seconds later)
         
Reply to Lev's Post: Can the creditors pursue any of the children to satisfy the debt?
Customer (name blocked for privacy)
Answer
June 18 2007 at 7:45 AM (34 minutes and 3 seconds later)
         
ACCEPTEDCheck Mark

In general, no - unless children received any distribution from the estate. Gifts received within the year are deemed a distribution from the estate.



The answer is an advisory opinion (not legal or financial advice). After accepting the answer bookmark it - you may return to this page later for reference or to ask for clarification. Appreciate your positive feedback.
Lev -- Tax Preparer -- 98% Positive Feedback on 625 Finance Accepts
Personal Investment, Tax Preparation
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