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Am I liable for the debts of a deceased parent or spouse?

If your parent or spouse passed away and left any debts, you may be liable for them. In the case of a spouse, it usually depends on whether you shared credit card debt, or have other shared accounts. In the case of a parent, whether or not you have to pay their debts depends on a number of factors such as whether you were a co-signer on a credit account responsible for the debt.

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Are life insurance and jointly-held property considered part of the estate of the deceased, and thus subject to the estate tax?

When a person passes away and leaves behind an estate, the total amount of the estate’s value is subject to the federal estate tax. The percentage of the estate tax varies each year, and typically is applied directly to the estate’s total value, unless the value of the estate falls below a certain threshold, in which case the estate is exempt from the tax.

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How should federal and state tax matters be handled in probate?

Federal and state taxes are important factors to consider when going through probate court, or in any stage of the estate planning process. Taxes are so important that even the idea of an estate exists largely for taxation purposes. After all, as the name implies, only the “taxable estate” is subject to taxation after death. For your estate to survive the probate process intact, you must understand your taxable estate and how to protect it.

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I owed a debt to a friend who recently died. Do I still owe the money to someone?

You still owe the debt to that individual’s estate. The obligation to repay a debt does not die with the creditor; if it did the debt would be a gift to the borrower, and that is not the case. The assets of an estate, including the debt you owe, will go first to pay the debts of the estate and then to the heirs, either under a will or under the state law on property inherited without a will.

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