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ScottyMacEsq, Attorney
Category: Legal
Satisfied Customers: 16370
Experience:  Licensed Texas General Practice Attorney
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Deceased spouse formed LLC in his name only am i responsibe

Customer Question

deceased spouse formed LLC in his name only am i responsibe for debts in NM
Submitted: 9 months ago.
Category: Legal
Expert:  ScottyMacEsq replied 9 months ago.

Thank you for using JustAnswer.

I'm sorry to hear about your situation, and my condolences on your loss. You have no obligation for any debts that were in the name of the LLC only, nor any personal liability for debts that he incurred in his name. You would only have personal liability for debts that you personally guaranteed or co-signed for.

Now if he guaranteed the debts of the LLC (rather than just signing them in the name of the LLC) then the creditors could have a claim against his estate. Basically it would be a claim against the amount of money / assets that he would have a claim to (roughly half) of the marital assets. But you still would not have any personal liability to pay those debts. If his estate couldn't cover the amounts owed (again, assuming that he personally guaranteed them) then you wouldn't have to pay the difference. You would have no liability on them whatsoever.

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable.

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Thank you, ***** ***** luck to you!

Customer: replied 9 months ago.
In NM. Community property state??
Expert:  ScottyMacEsq replied 9 months ago.

Separate debts continue to be separate. Upon the death of either spouse, the entire community property is subject to the payment of community debts. The deceased spouse's separate debts and funeral expenses and the charge and expenses of administration are to be satisfied first from his separate property, excluding property held in joint tenancy. Should such property be insufficient, then the deceased spouse's undivided one-half interest in the community property shall be liable.

Again, if it's only debt incurred on behalf of the LLC, and not personally guaranteed, then there would be no personal liability at all for him or you. If it was incurred prior to marriage then it would still be separate debt.

Expert:  ScottyMacEsq replied 9 months ago.

Did you have any other questions?