A person’s debt does not pass away with them when they pass away. Executors have a responsibility to properly manage and distribute the deceased’s Estate. Any debts incurred by the Estate are the Executor’s duty to settle. The Executors should start paying off all outstanding obligations after gathering the deceased’s assets. This could be anything from credit card bills, mortgages or loans to outstanding payments for utilities. The executors could be sued by a creditor if they distribute the Estate while there is still money owed to them. 

An Estate will be insolvent if there aren’t enough assets to pay off the deceased’s debts entirely.

In an insolvent Estate, specific legal procedures must be followed to decide which creditors receive payment first. When dealing with insolvent estates, we strongly advise seeking expert guidance.

You can get professional guidance if you feel uneasy handling the duties of estate administration or if you are concerned about being held personally accountable. A professional will be aware of the administration procedure and have the knowledge of paying off obligations. They will be able to give you the assurance that you require regarding the performance of your obligations. If you would like any assistance with the Estate Administration process, contact us today on 0800 090 3051.