Rachel Posted June 1, 2021 Share Posted June 1, 2021 When we die, what happens to our debts? Do they get tossed onto our children? Maybe our living sister/brothers? Or do the debts fall and die with me? I wouldn't want to put my debts onto anyone else. What is your opinion on this though? Do you think debts should die with the person? Quote Link to comment Share on other sites More sharing options...
James Posted June 1, 2021 Share Posted June 1, 2021 When you die your debt should be covered by your remaining assets. So whoever is managing the estate after your death will sell assets to pay down the debt balance. Most of the time if these assets are sold off and there is still debt owed the creditors would be out of luck. Now there are a few ways you can pass down debt. Anyone that co-signed for a loan will be on the hook. Joint owners on accounts. Spouses in any community property state (spouses are not responsible for debts that predate marriage). If the person tasked with settling the estates debt did not comply with the probate rules they could also be on the hook. As a business owner I think debts need to be settled regardless of if you are dead or alive because a product or service was provided and I would still need to be paid. Proper estate planning can prevent a lot of strange situations from taking place after death and is something that should be thought about. Quote Link to comment Share on other sites More sharing options...
Stacey Posted June 5, 2021 Share Posted June 5, 2021 If you are tired in with someone else via a contract, you will be held responsible for paying off the debts. A friend of mine's mother was co-signed on a few cards when her grandmother passed away and she ended up having to pay the debt left behind. Gotta be careful of that. What is a shame though is that in order to pay off debt, they can take away things left to the children. I have seen this happen. A paid off house was left to a brother and sister but because of the father's outstanding debts, it was taken away from them. 1 Quote Link to comment Share on other sites More sharing options...
Ella Posted June 7, 2021 Share Posted June 7, 2021 The only way debt will be passed on to someone else is through a mutual contract. Debt collectors will take property to cover the cost of unpaid debts and if the person who passed on owns no property, they are SOL! 1 Quote Link to comment Share on other sites More sharing options...
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