When your parents pass away, what happens to their debt?
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When your parents pass away, what happens to their debt?
Debt consists of house, unpaid loans, etc.
Asked on September 13, 2011 under Estate Planning, Ohio
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The decedent's estateis responsible for their debts. Before any assets can be paid out to beneficiaries/heirs, they will be sold or otherwise disposed of in order to pay off any financial obligations of the deceased. If there are not enough assets to cover such obligations, then the debt extinguishes (terminates) as a matter of law. Children do not inherit their parent's debts.
Att his point, you should consult with a probate attorney as to your rights/obligations.
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