N.Y. Estates, Powers & Trusts Law Section 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.

Source: Section 3-3.6 — Encumbrances on property of decedent or on proceeds of insurance, https://www.­nysenate.­gov/legislation/laws/EPT/3-3.­6 (updated Sep. 22, 2014; accessed Jun. 9, 2025).

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Verified:
Jun. 9, 2025

Last modified:
Sep. 22, 2014

§ 3-3.6. Encumbrances on property of decedent or on proceeds of insurance's source at nysenate​.gov

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