Submitted by traveler on Fri, 04/30/2010 - 07:48
My Dad dies several weeks ago with nothing in his estate. He had a car that is worth next to nothing but somehow a couple of years ago he got a $3000 loan on it which is still outstanding in part. As far as I know, I'm his only heir so is there any way I could be liable for the debt as an heir.
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Editor's Response
Sorry for your loss. The answer to your question is no. Upon death, the debts of the decedent become the debts of the estate. The general rule is that beneficiaries are not liable for the debts. Debts usually must be paid by the estate before any distributions can be made, however. In this case, since there does not appear to be an estate, that point is not relevant. In any case, you are not liable for the loan unless you somehow undertook an obligation to repay the loan, perhaps as a guarantor. For more information about the probate process, visit our Massachusetts Estate Planning Discussion Forum.