What happens to your debt when you die?

What happens to your debt when you die?

Your estate generally owes any of your debts. Creditors will come before your heirs. The rest of your estate is then given to your heirs. Assets will be sold , including heirlooms to pay creditors before heirs.

Your debt belongs to you and you alone; it is not passed on to your family members when you die. The laws regarding debt after death are defined at a state level, so there's really no umbrella answer for everyone. By cosigning, both parties assume full responsibility for the loan.  

Under Community Property states, debts incurred during the marriage are owed by both spouses.

Life Insurance Proceeds pass to a named beneficiary, and are not considered part of your Estate.  This money cannot and will not be used to pay your debts after your death.

Get a Term Life Insurance Quote today.  

Make sure your family is taken care of financially when you die.  

Read more about this topic



Profit from my 35+ years experience working with high net worth individuals, families, entrepreneurs and businesses, helping them create wealth, keep their wealth and pass it on to the next generation. You can benefit too. I have made and lost millions in the stock market and you can benefit from this too. Ever since I have been searching for Safe Income Strategies and Solutions. We use three Safe Income Strategies that are focused on keeping your money safe, paying more than Bank CDs, Money Markets and Treasuries without the gut wrenching downside and yo-yo volatility of Stocks, Bonds and Mutual Funds. These Strategies Work. During the Financial Market meltdown of 2008 and 2009 none of our clients using these Strategies lost money due to market volatility.

Share this article

Leave a comment

Your email address will not be published. Required fields are marked *

Plugin Sponsor WordPress Premium Plugin