New York Estates, Powers & Trusts Law Section 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

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.

Last modified: February 3, 2019