When a loved one passes away it can generate a lot of financial confusion. This is especially true as different credit card companies, medical billing agencies, and other creditors need to be notified about the deceased’s passing. In these circumstances it can raise difficult questions around whether or not anyone else is responsible for the debts of an estate. Debts, including those that were incurred while the deceased person was still alive, should be paid for with estate property.
For example, if the deceased person left behind a savings or personal checking account, that money can be transferred then to a bank account owned by the estate from which the executor can use these funds to pay the bills. However, if there is no cash immediately available, then certain funds such as burial or cremation expenses might need to be spent by the executor or family members.
If you are a person who steps up to make these payments, keep track of how much you spend as it may be reimbursable in the future. If you believe that there are not enough funds inside the estate to pay the debts of the deceased person, be careful about paying for anything either with estate funds or your own money.
Creditors have a time period in which to come forward with their claims and state law will determine the priority in order in which debts should be paid. This is a great opportunity to retain the services of an experienced probate lawyer to guide you through this process and ensure that no mistakes are made in the handling of a loved one’s estate. If you want your loved ones to avoid having to go through this additional frustration and confusion, schedule a consultation with an estate planning lawyer in MA now to structure your own plan for the future.
