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What happens to a person’s debts after death?

On Behalf of | Mar 31, 2016 | Estate Administration |

It is arguably tragic when an elderly person passes away without having the opportunity to enjoy their golden years by retiring. We use the term “arguably” because we understand that some people don’t want to retire, and their passion may be killed if they are unable to do what they love for as long as they can.

For others, retirement is not an option because they have a great deal of debt that they must deal with. They may be too proud to consider bankruptcy and do not want to burden other loved ones with their financial troubles. 

However, the question (and in some circumstances) the problem of debt does not go away when a person passes away. In fact, it is not unheard of for creditors to come after the deceased’s estate for payment on their outstanding debts.

This is not specifically because creditors may be greedy or heartless (even though some may be), but they know that an insurance policy or annuity may be out there that can satisfy an outstanding debt. This is where an experienced and knowledge estate planning attorney can be helpful.

A skilled lawyer can help in deciphering whether claims are legitimate. As we alluded to earlier, it is not surprising that some creditors will come out of the woodworks once a person passes. After all, they want the least resistance possible between them and collecting money.

If you are an executor and are experiencing creditors’ actions against your loved one’s estate, an experienced estate law attorney can help.

The preceding is not legal advice.