The estate has to pay off the debts. If the estate cannot do so, they distribute according to a plan as best they can. If the court approves the distribution plan, the debts are ended.
Life insurance is not considered part of an estate and is not available to pay the decedent's bills and debts. Even if there is no money whatsoever to pay bills, the insurance is not part of the estate. The only exception would be if there were no existing named beneficiaries or if the policy is payable to the estate. But even there, keep in mind that it isn't the "insurance" money that is now available to pay the debts. It is "estate" money, because the proceeds were payable to the estate. The Federal government will include life insurance proceeds as part of the gross estate for federal estate tax purposes, but that does not mean they are actually part of the estate.
The executor should never pay the bills themselves. They should have the estate do it. Yes, with proper receipts, there should be no problem with getting the money back.
The estate has the responsibility to settle all debts, including medical bills. The estate can demand the money back from the husband. Once that is done, then remainder can be distributed to the beneficiaries.
No. The executor or executrix cannot be held personally responsible for the decedent's debts.
No, the insurance money goes to the beneficiary named in the policy. If the beneficiary is not named, or the estate is named, it will go into probate.
yes
Life insurance paid to your estate could possibly be used to pay off personal debt. However, if the life insurance is paid to a beneficiary, it is their money, not yours, so the beneficiary has no obligation to use the money to pay off your debt.
Tell the credit card company that the card holder is deceased. They do have some rights in some states to collect the money owed from the deceased's estate. They can sue the "estate" for the money owed. Note: a life insurance policy paid to the widow is NOT his estate.
The deceases "estate" should take care of any medical bills that have gone unpaid. Also Medicare should be paying part of this if the deceased was age 65 or over. Whether or not the hospital can come after family members for this needs to be answered. Surviving family members are not responsible for medical costs of a deceased person unless they entered into a written contract with the care facility.
In California, and every other state, the estate is responsible for the bills. However, most insurance requires the insurance holder, normally the husband, to guarantee the costs. So indirectly, the spouse will pay because they will not inherit the money that went to pay the debt.
Life insurance with a beneficiary is completely separate from the "estate". If you receive life insurance, it's your. The estate includes bank accounts, homes, cars, etc. not the life insurance
In New Mexico, and every other state, the estate is responsible for the bills. However, most insurance requires the insurance holder, normally the husband, to guarantee the costs. So indirectly, the spouse will pay because they will not inherit the money that went to pay the debt.