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
As u/twelveparsnips says, debts do not “pass down” automatically to heirs in the USA (Not necessarily true of all countries). Creditors are allowed to claim from the estate of the deceased and only what is leftover is passed on to their heirs.
It is far beyond ELI5 if there are trust funds etc involved – get legal consultation.
Also while debts are not “passed down” automatically this is true only if you did not sign up personally to guarantee their debts or payments. Especially in family situations, some people might blindly sign guarantee forms which (ELI5) binds them to pay the bills in case the other party fails to.
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