Debts must be paid or settled before the beneficiaries can receive money from the estate. When we say “debts”, we mean money that the deceased would owe or money that must be paid on behalf of the deceased. Sometimes there are disagreements over what are considered to be valid debts of the estate.
There are differing types of debts. Some debts are established and known prior the Decedent’s death. Some debts are discovered during the creditor claim period. Debts can include the following:
- Medical Bills
- Credit Card Bills
- Funeral expenses
- Taxes
- Administrative costs, such as attorney fees
Following the close of the creditor claim period, debts are addressed. The personal representative can allow or disallow certain debts that are presented as creditor claims. Creditor claims and debts should be settled prior to distribution of assets to the heirs or beneficiaries.
If you or a loved one has known debts and creditors, there could be estate planning tools to consider or utilize prior to death to assist with efficiently handling debts and streamlining the distribution of assets to intended beneficiaries.
South Carolina Estate Planning Attorneys
For help with all of your estate planning or estate administration needs, contact Parker Law at (803) 784-4203 or contact us online. Estate planning should be done far in advance of when the day comes that you need it.
FAQ
How can I avoid probate?
Estates that are placed in trust can avoid probate with proper planning and titling of assets.
What does an executor do?
The executor administers and distributes the assets of the estate, handling all important matters. In South Carolina, the executor is referred to as the personal representative.