False ... any IRA distribution you take is taxable to you no matter what you use the money for...however there is no 10% penalty on inherited IRAs. Before you do anything you may want to seek guidance from a local attorney as you may not need to pay off the debt.
Totally agree. Unless you co-signed for the debt, his Estate (not you personally) is responsible for the debt. But who was retirement plan beneficiary? His Estate or you personally?