How Is a Debt Assigned to One Heir Handled? | NC

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Q: How is a debt assigned to one heir handled if the estate negotiates a lower payoff amount? A: Usually, the heir is charged with the amount the estate actually paid to settle the debt — not the original balance, and not an amount spread across the other heirs. The idea is that if the debt is properly that one heir's responsibility, the estate can offset that reduced payoff against that heir's…