N.Y. Estates, Powers & Trusts Law § 3-3.6: Encumbrances on property of decedent or on proceeds of insurance

§ 3-3.6 Encumbrances on property of decedent or on proceeds of insurance

policy on life of decedent not chargeable against assets of

decedent's estate

(a) Where any property, subject, at the time of decedent's death, to

any lien, security interest or other charge, including a lien for unpaid

purchase money, is specifically disposed of by will or passes to a

distributee, or where the proceeds of any policy of insurance on the

life of the decedent are payable to a named beneficiary and such policy

is subject to any lien, security interest or other charge, the personal

representative is not responsible for the satisfaction of such

encumbrance out of the property of the decedent's estate, except as

provided in SCPA 1811, unless, in the case of a will, the testator has

expressly or by necessary implication indicated otherwise. A general

provision in the will for the payment of debts is not such an

indication.

(b) Any such encumbrance is chargeable against the property of the

decedent or the proceeds of a policy of insurance on the life of the

decedent, subject thereto. Nothing in this section imposes upon a

testamentary beneficiary, distributee or named insurance beneficiary any

personal liability for the payment of the debt secured by such

encumbrance.

(c) Where any lien, security interest or other charge encumbers:

(1) Property passing to two or more persons, the interest of each such

person shall, only as between such persons, bear its proportionate share

of the total encumbrance.

(2) Two or more properties, each such property shall, only as between

the recipients thereof, bear its proportionate share of the total

encumbrance.