If you are an executor of an estate, you may need to deal with debts that have been left behind. Any estate may have debts to be considered, even if the deceased was wealthy – it is reported that Michael Jackson died with around $500 million worth of debt.
‘Personal debts do not expire on death, they are carried over into the estate,’ says Sian Foster, Head of Wills & Probate with Ware & Kay in York. ‘It becomes the responsibility of the executors to make sure those debts are repaid.’
Impact of debts on beneficiaries
Naturally, if an estate includes any debts this will mean that there is less to be distributed to the beneficiaries. However, the extent of a beneficiary’s disappointment will depend on the nature of the gift they are expecting as well…