What Happens to Debts of a Deceased Person?
When a person dies, his or her financial obligations do not simply vanish. Parties owed money by the deceased may continue to seek repayment under certain circumstances. If the deceased has left behind a will or a living trust that names another person as the executor (will) or trustee (trust) of his or her estate, it is the executor or trustee’s responsibility to see that all creditors are notified and, if necessary, repaid. In a few situations, a relative or acquaintance of the deceased may be required to cover an outstanding debt, though some states provide protections that reduce the amount owed.
