Can a collection agency garnish an estate account?
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Can a collection agency garnish an estate account?
I recently opened an estate account. The money in the account is money my father left to me. I just received a bill for a debt he did not pay. Can they garnish the estate account for the monies owed? The money in the account is life insurance. After paying his funeral expenses there is less than $15,000 in the account.
Asked on August 3, 2012 under Bankruptcy Law, New Jersey
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your loss. If the life inruance was payable "to the estate" and not to you directly - which is what I think that it was here - then it is subject to garnishment for the debts of the decedent (your Father). I am assuming that a formal estate was opened. Was notice to creditors given pursuant to the law in your state and did they file a claim with in the time frame provided by law? If they did not then they are precluded from collecting (as long as you did not know about them too). If they are with in their legal rights then negotiate the debt. They will do that. Good luck.
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your loss. If the life inruance was payable "to the estate" and not to you directly - which is what I think that it was here - then it is subject to garnishment for the debts of the decedent (your Father). I am assuming that a formal estate was opened. Was notice to creditors given pursuant to the law in your state and did they file a claim with in the time frame provided by law? If they did not then they are precluded from collecting (as long as you did not know about them too). If they are with in their legal rights then negotiate the debt. They will do that. Good luck.
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