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Jane declares personal bankruptcy. She owes her creditors $1,000,000.

Before bankruptcy proceedings have begun, Jane dies. In her will, she leaves her entire estate to her daughter Sarah. Her estate is valued at $500,000.

Who gets the money — Sarah, or Jane's creditors?

Gabriel Roth
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1 Answers1

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In most cases - the deceased estate will pay secured creditors, unsecured creditors, then beneficiaries.

This would depend on any other entities that may have been created by the deceased in anticipation of this, but otherwise, Jane will get nothing.

jimsug
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