As a resident of New York, you may have questions about how the assets in your estate will be handled upon your passing. High on the list of these queries is apt to be a question about what rights your existing creditors have in regard to your assets at the time of your death. There are a number of important facts that you will want to bear in mind when it comes to the rights of creditors.
Death of a married person in New York
If you are married, your spouse will bear liability for debts that you jointly accrued during the course of time that you were together. For example, if you have a home mortgage, your spouse will become fully responsible for it after you pass on.
General creditors and your estate in New York
Like many people, odds are that you will die with some debt in your name. At the time of your death, certain creditors are able to make claims for payment from assets of the estate. This is accomplished through the probate process.
Pursuant to New York law, taxes and money owed to certain types of creditors need to be paid before a distribution of remaining assets to heirs take place. If you were to place your assets into a certain type of trust, the probate process can be avoided, and the creditors will have no claim to those funds.
Protecting your assets is a major consideration when you are preparing your estate planning documents. You can develop meaningful strategies with guidance from an experienced attorney.