Quote Originally Posted by kisshmet View Post
Children left behind by a deceased are supposed to inherit assets right

How about liabilities of the deceased?
No. The creditors of the deceased can run only after the properties of the estate.

If there's an estate proceeding whether restate (deceased left a will) or intestate (deceased left no will), the creditor must file his claim in the proceeding and prove his credit there. In the distribution of the estate, his claim will be settled there after payments for taxes but before distribution of the net estate to the heirs.

If there is no estate proceeding, the creditor must be vigilant. In case of extrajudicial settlement of the estate by the heirs (where the deceased supposedly left no debts), the properties of the estate that have been distributed to/partitioned among the heirs are encumbered (charged) for a period of two years during which the properties may answer for any claims of creditors. This encumbrance (charge) is annotated on the certificate of title on the property that is issued in the name of the heirs as a result of the extrajudicial settlement. So any buyer of the property from the heirs will have to be careful that he buys the property after that has expired, otherwise the creditor of the estate may still run after the property even though it is already in the name of he heirs.

After the period has expired, the heirs (or the buyer if the property has been sold by the heirs) may go to the register of deeds through a written petition to have the encumbrance cancelled.