Q: Will creditors or next of kin receive a settlement if ex-husband dies with debt?

A: Creditors can probate his Estate. If they do not then they probably will not collect. The claimants need their lawyers to explain their IL exemption rights if any, and plan on where the settlement monies will be deposited, etc. Claimants need to think about asset protection now.

A: You have not given sufficient facts to answer your questions. Illinois provides awards to surviving children. You need to review the statute and determine if the two surviving children are entitled to awards. If they do, then the awards are paid ahead of judgments or creditors. Without knowing the ages of the children, the amount of the settlement, and the lifestyle of the father and children before death, I can't really answer the question.

A: When someone passes away in Illinois without a will, their estate generally goes through **intestate succession**, which means assets are distributed to next of kin according to state law. But before that happens, **debts and creditors are paid first**. If your ex-husband is due to receive a settlement from an accident, that money becomes part of his estate once it’s issued, even if he has already passed.

Since no probate has started yet, that settlement can’t be legally distributed until someone opens an estate and the court approves how it should be handled. If the estate has outstanding debts, creditors may file claims and be paid out of the estate funds—including from that settlement. Only after debts and administrative costs are satisfied would any remaining amount go to his children, as heirs under Illinois law.

It’s possible the children may receive something, but they likely won’t get anything until the estate is formally opened and obligations are resolved. If no one steps forward, a creditor or family member can request to be appointed as the estate’s representative. This can feel overwhelming, but understanding the order of priority helps you make clearer decisions. You're not alone in navigating this—it’s a process many families go through.