Paying Debt

Beneficiaries cannot receive their inheritance from a will until all remaining debt has first been paid. In estate administration, the first step that has to happen is gathering and appraising assets. This is necessary so the debts can be paid and so that the executor can begin distributing remaining assets.

The executor of a will is the personal representative that is in charge of estate administration. This takes place after an individual has died. Usually the deceased names who the executor will be, but if they do not, the court may decide who should be responsible.

Most people die with some sort of remaining debt. Not all of the creditors will know that the individual has died, so it is the responsibility of the executor to notify the creditors and financial institutions. If the estate does not have enough funds to cover these debts, then the court will decide which creditors should be paid first.