Debts do not usually pass to relatives automatically. They are generally paid from the deceased person's estate, and heirs are not personally liable in most cases.
The general rule
The executor pays valid debts and expenses from estate assets before distributing what is left. If the estate lacks enough assets, many unsecured debts may go unpaid. Heirs generally are not responsible for the deceased person's debts with a few exceptions.
When others may be responsible
- A co-signer or joint account holder.
- A surviving spouse in community property states for some debts.
- A spouse for certain medical expenses under state law in some cases.
- Someone who inherited secured property such as a house, who may need to keep up the loan to keep the property.
What to do
- Do not pay debts out of your own funds without understanding the rules.
- Ask collectors for written validation.
- Notify creditors and provide the death certificate.
- Tell collectors who the executor is. You may tell them to stop contacting you if you are not responsible.
- Consult a probate attorney if the estate is insolvent.
Protected assets
Life insurance paid to a named beneficiary and retirement accounts with beneficiaries usually avoid creditors and probate. Watch for scams where someone demands immediate payment for a family member's debt.
Frequently asked questions
Can collectors call me about my parent's debt?
They can contact the executor or personal representative, but must follow collection laws.
Does the debt disappear if the estate is empty?
Often it is not collectible, though secured debts may be repossessed.