What happens to debts in an intestate estate?

In Illinois, when someone passes away without leaving a valid will (intestate), their assets are distributed according to the state’s intestate succession laws. Any debts and liabilities that the deceased had prior to death must also be taken care of. As part of the process for closing out the deceased’s estate, the Executor (or Personal Representative) will be responsible for paying any remaining debts, taxes, or other liabilities. The Executor will usually first pay off debts that are secured by tangible assets, such as a mortgage or a car loan. Theseassets will then be transferred to the beneficiaries as part of the estate. After these debts are settled, the Executor will use the remaining assets to pay off unsecured debts, such as credit card bills, medical expenses, or any other outstanding liabilities. Depending on the amount of assets in the estate, the Executor may decide to cover the majority of the remaining debts. If there are not enough assets to cover all of the debts, the Executor may prioritize who to pay first. In some cases, the Executor may decide not to pay some of the unsecured debts, as they are not legally required to do so. In any case, the Executor must document all of the payments and debts that are settled as part of the intestate succession process. This documentation is important for the Executor to ensure that all of the debts have been taken care of before the estate is considered closed.

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What happens to debts in an intestate estate?

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