Does surviving spouse have to pay line of credit from husband's business?

Answer 1

If a surviving spouse inherited the husbands's business, then the debits come with it. That's a general answer, but it has a solid basis in law. A strong suggestion in situations like this is to trade places with the other party. In this case, it's the institution extending the line of credit. Let's switch out and see what happens. You extend a line of credit to someone. They pass on and their spouse takes over the business. It's unfortunate for those parties, but you do not give up your expectation that you will be repaid for extending the line of credit. Why would you? You still have an outstanding collectable account. You are fairly owed the money. Nothing from your point has changed. Neither has it from the institution extending the line of credit to your late spouse's business. State laws vary as regards the transfer of assets, but the general answer remains the same. With the assets come the debits. Take all of the balance sheet (both the black and red ink) or take none. If time will help with working things out, write and ask for it explaining the circumstances. How much better a reason than the one cited for needing an extension to balance the books? Get help if you need it. Ask around among friends or other family for a referral. Some accounting firms do pro bono work, and not just attorneys. The more time that slips by without any action, the more difficult a less-than-ideal situation becomes. Most sincere condolences. And very best of luck sorting things out.