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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The TLDR is that you will never have to pay off any of their debts when they die. If their debt was more than the value of everything they owned, you will probably not get anything as an inheritance but you won’t have to pay anything else.
As an example, if your parents were $1,000,000 in debt but owned $2,000,000 worth of stuff, they’d take from that 2 million to pay off debts and then you’d get the remaining 1 million. If instead they were 2 million in debt and owned 1 million worth of stuff, that 1 million would be taken to pay the debt but you wouldn’t have to make up the difference of 1 million, it’d just be gone.
Obviously simplified for ELI5 but the general idea is that you don’t have any legal obligation to pay off their debts, but their debtors have a high priority to their property than you do
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