What if there are not enough assets in the estate to pay all of the deceaseds debts?
Obviously there will not be any inheritance to the heirs or beneficiaries, who receive assets only if all debts are paid. Florida law has a stated priority of claims, in which some claims (such as funeral expenses and final medical bills) come ahead of others. Most important in this day of “living trusts,” Florida law allows the creditors to reach assets of the deceased which were placed in certain types of trusts, and requires those trustees to use trust assets if necessary for estate expenses and claims. Agreeing to serve as personal representative does not obligate one for the debts of the deceased; they are obligations of the estate, to the extent there are assets to pay them, but becoming an executor does not make those debts your own.
Related Questions
- If the debts of an estate are more than the assets, what happens? Does the surviving spouse have to pay the debts of the deceased spouse, or do children have to pay the debts of the deceased parent?
- What if there are not enough assets in the estate to pay all of the decedent’s debts?
- What if the estate lacks enough liquid assets to pay the debts?
