Does the executor of the estate have to pay their personal judgment at settlement,when the deceased persons home is sold
1 Answer | Asked in Estate Planning Law for Pennsylvania on Apr 24, 2013.
Answered On Apr 24, 2013
I don't understand your question. You ask if the executor of an estate have to pay a personal judgment against the executor? The duties of executor are separate from personal legal matters. If the executor was sued in his/her individual capacity on matters pertaining to something other than the estate, then the executor, who I hope had an attorney has to discuss with counsel whether to pay the judgment or file bankruptcy. However, resolution of the judgment does not depend on sale of the decedent's home. If the estate has been sued, the estate is a thing not a human. The lawsuit has to be served on some person and some person must handle the litigation on behalf of the estate. That person is the estate executor and if the estate is sued, then the lawsuit would be served in the executor in his/her administrative capacity not his/her personal capacity. In such case, then yes any money judgment against the estate would be paid out of estate funds whenever there are estate funds. If the home has to be sold to bring funds into the estate then the home must be sold and the judgment and any other claims paid. Any money judgments or other valid claims are paid before the heirs/beneficiaries get anything other than the family exemption.