After a person dies, the deceased’s debts are paid from the collective estate before any distributions are made to beneficiaries. Payment of the deceased’s debts will ultimately reduce the amount beneficiaries receive. A Will may hold specific instructions for some debts, such as a mortgage. For example, the Personal Representative may be directed to pay off the mortgage using estate funds and then transfer the mortgage-free property to a beneficiary. Alternatively, the proceeds of the sale of the property may transferred to a beneficiary. In the case that the estate does not hold enough money to pay the deceased’s debts, it is important that the Personal Representative seek legal advice as soon as possible. In most cases, if the estate is administered properly, a Personal Representative will not be personally liable for the deceased’s debts. If you have questions about estate planning and debts, or estate administration, call or email us to book a free consultation.