Will my heirs inherit my debt?

ASK DALE!

Your outstanding debts won't follow you to your grave, but your next of kin may have to pay them. Or will they? Dale explains whether a woman is responsible for her deceased father's debt. Here’s a question from a real consumer - just like you!

Melinda tells us, “My father died earlier this year, and a debt collector recently contacted me about a bill they say he owes. I think they want me to pay off the debt. Am I responsible?”

Long story short? Probably not. 

When someone dies, their assets pass on to their estate, and their estate pays off any remaining debts. When the money runs out, unpaid debts are usually written off. 

You are generally NOT personally responsible for paying a deceased relative’s debts... Unless you shared any debt with that person. For example, if you co-signed a loan with a relative and they die, you'd be responsible for paying it off. However, if you were not involved with the debt, you likely aren’t going to be involved now. 

Some states treat debt differently, so you may want to talk with an attorney who specializes in estate planning. They can help clear up any confusion if you’re still unsure what your responsibilities are.