Amidst the financial strain since the Covid-19 pandemic, families and businesses are grappling with mounting levels of debt. When considering estate plans, a crucial concern arises: what if a client burdened with substantial debts or liabilities from their business unexpectedly passes away? Navigating debts of a decedent in estates requires careful planning.
Handling claims against an estate can be either simple or complex. Simplicity prevails when the estate is solvent, while complexity arises when it is not. Here, we will focus on estates in the U.S., as estate administration under Civil Law differs significantly. Moreover, differences within the U.S. may exist from state to state. Therefore, seeking guidance from a local estate planning or asset protection advisor is advisable.