Estate

The deceased person is legally termed the "decedent." All assets held by the decedent in his individual name automatically become a part of her "estate."

Assets

The decedent's estate assets are liquidated into cash. Only the decedent's estate assumes complete fiduciary accountability to settle her debts.

Probate

Probate court checks for liens and encumbrances to be settled before beneficiaries receive any transfer of decedent's property. Judicial oversight is coordinated with the will's appointed executor or administrator.

Estate insolvency

In some cases, the decedent's debts may exceed her estate's assets. In this case, the remaining debt is null and void and accounts are closed.

Exception

When the decedent has a co-signer or guarantor to cover costs of medical treatment, the co-signer is liable because he has assumed equal liability. This may have occurred if the decedent wasn't able to provide collateral for medical treatment expenses.

Bill Collectors

To avoid collection agency harassment, obtain copies of the decedent's death certificate and immediately send it to all creditors. If the decedent does not have a will, the probate court can appoint an administrator to deal with bill collector's issues.

Source:

Bankruptcy Law Network

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