Many people believe that once a person writes a Will, or once properties are shared through Letters of Administration (where there is no Will), the beneficiaries automatically get to enjoy everything the deceased worked for.

Technically, that sounds right. But in reality and under the law, it is not so.

What most people do not know is this: Beneficiaries do not inherit only assets — they also inherit the liabilities attached to the estate.

And one major liability is debt.

When a person dies, people often assume:
The debt has “died” with the person, or creditors should go and meet the family members personally to demand payment.
Both assumptions are wrong.

Under Nigerian law, when a person dies — whether with a Will or without one — everything he owned( houses, lands, bank accounts, crypto currencies, investments and everything he owed (debts) becomes part of his estate.

What this means in practice is this: before any property is shared or enjoyed by beneficiaries, all valid debts of the deceased must be identified and settled, first.

Only what remains after settling the debts and liabilities, can be distributed to beneficiaries.

It is pertinent to note that family members (spouse, children, siblings) are not personally responsible for the deceased person’s debts, unless they were co-borrowers, or they guaranteed the loan.

Now the question is: How can a creditor recover money owed by a deceased person? This is where you need a Lawyer to guide you through the legal process of recovering your money (debts) from a deceased person.

The moral of this post is: Debts are recoverable even after the death of the debtor, and beneficiaries of a Will or Letter of Administration do not only inherit assets, but also bear the liabilities attached to the Estate of the deceased.

Do you understand? Let me know in the comments.

FAMILY LAW THURSDAY