Can someone please explain exactly who debt works in relationto death? I understand it means you owe money, but if my parents die owing a bunch of money and leave stuff to me, do I inherit their debt as well? Do I have to pay their medical bills?
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You are never responsible for a decadent’s debt unless you co-signed the loan with them or otherwise took responsibility (in the US under current law). Debt collectors may contact you and make you think you are, but you are not. If a person dies with a loan or line or credit solely in their name, the debt dies with them.
With that being said, if someone does with an outstanding debt their creditors can try to collect that debt from the deceased person’s estate. In simple terms, when someone dies, a court will make a list of all the stuff the own (assets; a house, a car, money in the bank, etc.) and all the stuff they owe (debts, like an outstanding mortgage or car loan or credit card). Creditors do have the right to collect on their debt from the decedent’s assets. If there are insufficient assets, the creditors are out of luck. But the point is that it is sometimes to your advantage to pay off a decedent’s debt. For example you may want to pay off their outstanding mortgage to inherit their house and not owe anything on it anymore.
TL;DR if the debt is solely owned then it dies with the decedent and you are not responsible for paying it. However creditors can and will attempt to collect their debt against the decadent’s estate. It may sometimes be to your and advantage to see those debts paid.
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