If it’s about peace of mind or freedom, then reducing debt or keeping the cash parked makes a lot of sense.Also agree with others here—there’s no rush.

I have 2 ideas for paying that debt (if those interest rates are high): one is that if your husband has a 401k at his employer, he could take out a loan (which typically has a very low interest rate) and use that money to pay off the debt or most of it.

Taxes have to be dealt with and all creditors and debtors and heirs have to be identified and notified. 

The government will either sell debt or print money. 

They’re convenient, but the downside is you often don’t get the full SSN or DOB for your records.If you ever need to collect on a debt or get a judgment enforced (like garnishing wages), having the full SSN and birthdate makes things much easier for your attorney or collection agency.

Generally most cash out refinances are used to consolidate high interest debt or put you in a better position (buy appreciating assets etc..)

If your DTI does not support that, you have to either change your debt or your income.

Once you get a judgment, you can usually call a meeting with your attorney and the debtors and gather information such as bank accounts, assets, employment and so on.

Maybe if you had this cash you would us it to pay off debt, or a college fund, or buy a jet ski instead of this specific house.You can use Zillow to get an idea of market rents in your area.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).