What happens to a persons debt when they die?
Debts aren’t automatically buried with the deceased. A person’s debts must be repaid from funds or property owned in life. Generally, debts must be paid off before the inheritance can be distributed. The person executing the will may have to sell the deceased’s property for funds to pay the debts. Of course, if the person dies broke and in debt, creditors don’t get paid. Those left behind don’t usually inherit debts. But if you bequeath property that is collateral for a debt, the new recipient gets the debt along with the property. For example, if your house mortgage isn’t paid off and you leave the house to your sister, she’s stuck with the mortgage, too. If you’re married whe
