What happens to debts in an intestate estate?

In Arkansas, when a person dies without leaving a will (intestate), their estate is distributed according to the laws of intestate succession. These laws set out who will inherit the deceased’s property, but they do not cover what will happen to any debts the person had. When a person dies intestate, the estate’s debts must be paid by the executor of the estate before any assets are distributed. To do this, the executor must access the deceased’s belongings and assess which debts are owed. The executor then has the responsibility of paying those debts and is also allowed to use assets from the estate to do so. If there are not enough assets in the estate to cover the debts, then the creditors have the right to seek payment from the person’s heirs. This is why it is important for heirs to know about any debts the deceased had before the inheriting any assets. If the estate is insolvent, meaning that there are not enough assets to cover the debts, then the creditors are not entitled to payment. In this case, the estate is closed and the assets are distributed among the heirs. It is important to note that the state of Arkansas does not have debt exemption laws, meaning that creditors of an intestate estate can go after the heirs for payment before any assets are distributed. If the deceased had a will, however, any debts are handled according to the instructions of the will.

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What happens to debts in an intestate estate?

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