QUESTION
Does he still owe this debt to the estate after passing?
Asked on Feb 15th, 2015 on Estate Planning - Michigan
More details to this question:
My father passed then grandmother. He owed $18000 debt to the estate. My aunts and uncles say he owes this debt and it will be took out of my father's share which me and my siblings now get.
2 ANSWERS
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Generally valid debts of a deceased survive the debt and are paid from the estate of the deceased prior to distributions to the heirs.
Answered on Feb 17th, 2015 at 1:38 PM
The answer depends on the facts. So, if your grandmother had a Will and it provided your father should receive some amount and did not say anything about what would happen if your father died first, then, perhaps, the gift is properly payable to his estate. Because his estate owes your grandmother's estate $, then deduction of the amount owed might be proper. If, instead, the gift to your father lapsed because he died first, and now his share is going elsewhere, then deducting the amount owed is not appropriate. This matter is complicated enough that you need to visit with an attorney and provide all of the facts to get an answer.
Answered on Feb 17th, 2015 at 8:46 AM