Any estate planning should consider the liabilities which must be paid, and the sources of payment.
Improper planning can cause delay and inefficiencies that can be costly to the surviving family.
The estate may also be placed in the position of a creditor and collect debts owed to the decedent. This sometimes occurs when individuals lend money to family members with the intent at some point to forgive the debt, but maintain the note for various personal reasons. The death of the note holder can cause financial strain and embarrassment to the debtor when payment is requested by the executor through the probate proceeding. It is the duty of the executor to demand payment and it is not within his authority to forgive the note. Thus, the collection of all loans should be anticipated, and those not intended to be collected should be properly extinguished either during lifetime or through provisions in the will.