Tips For Dealing With The Debt Of Someone Who Has Passed Away
If you are the executor of a will, you are going to need to make sure that you work with your probate attorney to deal with any debts that the deceased might have had when he or she died. This can be a frustrating process because it will chip away at how much the overall estate is worth and could lead to creditors bothering you. Here are some tips for resolving your loved one's debts as quickly and efficiently as possible.
1. Identify All of the Debts
Your first step is to get a full list of all of the debts that your loved one carried before he or she passed away. You can advertise in the local paper to find any creditors who need to be paid or go through opened bills to get an idea about what debts your loved one owed. Next, you will need to identify which types of debt are solely the responsibility of your loved one. These will need to be paid directly out of the estate and are relatively easy to work with, assuming that the funds are there.
You will also need to see if there are any debts that are jointly held, meaning your loved one and another person held the debts together. You will need to speak with the other person on each debt to see if you can pay off half the current debt with the estate and leave the other person to pay the rest, or whatever sort of arrangement is mutually agreeable.
Finally, you will need to find any debts that have a guarantor. If there are any debts that have a guarantor, that person is liable for the debt and you simply need to inform him or her that your loved one has passed away.
2. Call the Creditors
Next, make sure that you call the creditors to tell them that your loved one has died and that you are going through the estate. This will reduce the number of calls you get asking for money.
3. Use Insurance and Then Pay Off Debts
Finally, check to see if your loved one had any insurance for any of the debts. If he or she did, use that insurance to pay off those debts. Then, contact your probate attorney to help figure out which debts have priority with regards to getting paid off. You will need to pay off the debts until they are all paid or until the estate is gone in priority order. Heirs don't get anything until the debts have been paid off. Consider selling assets to finish paying off the debts.
For more information, talk to a probate attorney that specializes in probate.