Is the estate executor or power of attorney required to pay off all debt after someone dies, if the life insurance is left for other purposes?
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Is the estate executor or power of attorney required to pay off all debt after someone dies, if the life insurance is left for other purposes?
Asked on December 22, 2011 under Estate Planning, Indiana
Answers:
Paula McGill / Paula J. McGill, Attorney at Law
Answered 13 years ago | Contributor
If an estate needs to be open in court, the administator/executor collects the assets, determines the liabilities, and pays off the liabilities with the assets as instructed by the will and law. If there are any assets left, the administator distributes the assets. If liabilities exceed assets, and there isn't a cosignor on the debt, nobody is responsible for the unpaid debts.
The person with the power of attorney lost all power when the person dies.
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