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Executors will need to address remaining debt during probate

| Aug 12, 2020 | Wills And Probate

The loss of a loved one can weigh heavily on any Connecticut resident. Though it is important to take time to grieve, individuals who have been named the executor of an estate will need to start carrying out their obligations soon after the person’s passing. Many details need to be handled during the probate process, and one issue that executors will need to address is the decedent’s remaining debt.

Even after a person’s passing, creditors want to collect on any unpaid balances. Often, they will try to obtain assets from the remaining estate to cover what was owed at the time of death. Executors will need to pay any applicable creditors before distributing any assets of the estate to other parties. It is also important to keep in mind that state law can dictate which creditors take priority and should be paid first.

On the other hand, some outstanding liabilities may still have a living person to take responsibility for the balance. For instance, if a person co-signed on a loan with the now-deceased individual, that surviving party will likely take over the payments of the loan. Additionally, that person can be held liable for any missed payments and other issues relating to the debt.

Sifting through another person’s personal and financial information can be difficult, but it is necessary during probate. As a result, if Connecticut residents have taken on the role of executor, they may want to ensure that they know who to pay and when. Fortunately, knowledgeable attorneys can help executors understand the appropriate time to carry out each stage of the process.

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