New York Laws
Part 3 - Rules Governing Testamentary Dispositions
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.