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?
In: 50
Lets say I own my home outright, no mortgage, and have a million dollars in the bank.
You are my heir.
I also owe $500k in secured credit to a bank.
Then I die.
My Estate is required to pay off any and all debt. You get the rest.
Now, lets say I rent an apartment, have $1000 in the bank, work a job, and have a car loan for a $50,000 car.
You are my heir.
Then I die in a car accident that totals the car.
My Estate tries to pay off all debts. There will be no money left over, so you get squat. The car company might TRY to get you to make good on the outstanding loan, but you are not legally bound to that debt.
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