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
In the United States at least (I can’t speak for other countries) people don’t inherit the debts of their parents. Creditors can take from the estate (the estate is the stuff you inherit) but you can’t personally be on the hook even if the entire estate is not enough to satisfy their debt. The worst case scenario is that creditors take everything from the estate to satisfy the debt and leave you with nothing, but you won’t have to pay out of your own pocket. You would only be personally responsibly for debts that you yourself assumed, for example if you co-signed a loan.
The one exception to the above is some states (but not all) have what are called filial responsibility laws, which means if your parents are indigent (meaning they can’t financially support themselves), you could potentially be responsible for paying some or all of their medical debts or nursing home expenses, but only Pennsylvania has actually enforced this law anytime in the last few decades.
Latest Answers