pass on debt?

[jeteaa]

If a relative were to die and you were their next of kin would you be responsible for paying their debts out of your personal (not inheritance) money?

[velochic]

It would come out of the estate. If, for example, someone had $100,000 in their estate, and they said that you get everything... but they owe $30,000 in credit card debt, then the credit cards would get paid and you'd get $70,000.

If they died penniless and had $30,000 in credit card debt, then the credit cards eat the debt. You don't have to pay anything, unless it's your spouse... and even that depends on the state laws.

[Auntie Sapphire]

As I understand it (in the USA, anyway), after someone dies their estate is responsible for paying off debts that person incurred. After the debts are paid, whatever assets are left over go to the heirs. If the assets are not sufficient to cover the debts, the heirs do not inherit the debts -- the creditors just don't get paid fully.

Now, if (for example) the relative left you their $100,000 house in the will, but there was $200,000 in debt, it's possible that the house would have to be sold to pay as much of the debt as possible, and you would not inherit the house.

Also, some unscrupulous creditors will try to tell the survivors that they are responsible for paying the debt. These people suck.

[cristeen]

A non-spouse relative, no. If there is not money in the estate for it, then they don't get paid, period. The survivors are not responsible.

[BathrobeGoddess]

But know your rights because some (maybe most) loan and CC companies will try to get money out of the surviving next of kin hoping they don't know they law...

[blessedwithboys]

yes to everything so far, but i will add that after my father died i was appointed administrator of the estate and now, yes, i am responsible for all of his debt out of my own pocket, IF AND ONLY IF i mismanage the estate funds. for example, he left a fair amt of money and had 100% insurance coverage for the month in ICU, but lets just say there was no insurance...the hospy bill was about a half million. if i chose to spend the $30k in his personal account on my own expenses, i would then be held responsible for the hospy bill. but the insurance covered everything and i am managing the money properly which is easy bc the only estate expense is the lawyer i hired, so in a few months my sis and i will split the money free and clear.

[Lucy Alden]

And of course, if you (or whoever), had co-signed on a loan or had a joint account then you (or again whoever) would be responsible for the amount due.

[Austin'smom]

Originally Posted by jeteaa

If a relative were to die and you were their next of kin would you be responsible for paying their debts out of your personal (not inheritance) money?

No. The estate would be liable for all debts. Unless, you cosigned on a loan, hold joint property with the deceased(in which their percentage of the asset belongs to the estate), or were appointed the executor of the estate and mismanaged the assets of the estate.

[FloridaBorn]

I'm sorry, but you are NOT responsible for dead people's debts for things like credit cards and medical bills. You send the creditors a certified copy of the death certificate.