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The management of debts in a decedent's estate

It is not uncommon for a Moorestown resident to pass away with assets to his name. It is also not uncommon for such an individual to die with outstanding debts such as home mortgages, car loans and other personal financial obligations. When a person passes on and leaves both debts and assets in her estate, it is often up to the estate's administrator to figure out how to manage asset distribution and debt satisfaction.

Like other debts, debts that survive the debt holder are regulated under the Fair Debt Collection Practices Act. It is usually from estate proceeds that a debt is paid. However, if an estate does not have enough money in it to cover a debt, it is not uncommon for the debt to remain open.

The debts of a decedent do not become another person's responsibility. A creditor or debt collection organization cannot seek payment of a debt from a decedent's relatives. Collection agencies cannot harass a decedent's spouse, children or other relation in order to get payment of a debt.

Though estate administrators do not have to speak with debt collectors, they generally must account for decedents' debts and assets while preparing the decedents' estates. There are laws that regulate how and which debts must be paid out of an estate; when confronted with challenging questions regarding estate administration and debts, some individuals utilize the services of estate attorneys to help them address their inquiries.

An estate executor has a big job to complete when an individual passes away. Enduring harassment from debt collectors should not be part of that job. Amassing personal property, addressing debts and carrying out the final wishes of the decedent are responsibilities that executors have to undertake in order to complete their estate administration tasks.

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