Legal Responsibility for a Relative's Debts in Illinois
After an individual dies, his estate is responsible for paying any debts. If the estate does not have enough money, the debts will go unpaid. Debt collectors are not permitted to collect payment from relatives unless the relative was a co-signer or guarantor of the indebtedness. Children are not responsible for the debts of their deceased parents.
Some assets are exempt from debt collection.
If a debt collector contacts you, it is best to give the collector the contact information for the executor or the administrator of the estate. The executor or administrator will in turn refer the matter to the lawyer assisting him with the estate.
Individuals who give valuable assets like jewelry to children before their death need to be mindful of the fact that these gifts could be viewed by a court as fraudulent conveyances designed to defraud the creditor. A court may order the individuals to turn over the gift to the creditor. Also, if the executor or administrator gives the assets of the estate to beneficiaries before creditors are satisfied, the executor or administrator becomes personally responsible for payment of the creditor claims.
Contact your estate planning attorney for more information.
