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Information on Creditor Claims on Estate - The Bills.com Blog
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Information on Creditor Claims on Estate
Question: Can outstanding medical bills be used against you in your estate?
Answer: Generally speaking, any outstanding debts you owe, including medical bills, can file a claim against your estate in the event of your death. For example, if you pass away leaving a large sum of money and a property to your heirs, the executor of your estate has a duty to pay any creditors that make a legitimateclaim against your estate before distributing your assets to your heirs. The process in which your estate goes through probate and how creditors are allowed to file claims is governed by your state law, and can vary significantly from state to state. For example, many states allow all assets to pass to a surviving spouse without going through probate, with all claims deferred until the death of the surviving spouse. Given the complexity of estate law, and the negative consequences that can result from improper planning, I strongly encourage you to consult with a qualified
estate attorney in your area. An attorney should be able to tell you how your state’s laws may affect any claims your creditors may have against your estate, and can also help create a strategy to protect your assets to the maximum extent from creditors and taxes.
For general information regarding the preparation of a will and planning your estate, you may want to visit www.nolo.com . However, while this information can be helpful, general advice such as that offered by Nolo
must not be considered as a substitute for the professional guidance of an attorney who is familiar with your financial situation.
I cannot emphasize enough the importance of retaining a qualified attorney to guide you through the estate planning process; estate law is not something that laymen should try to navigate without professional assistance. I wish you the best of luck in your efforts to protect your estate, and hope the information I have provided helps you Find. Learn. Save.
Best,
Bill
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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