Dear Savvy Senior,
What happens to a persons debt after they die? My mother has taken on a lot of medical and credit card over the past few years and Im worried that my brother and I will be responsible for it when she dies. What can you tell me?
Worried Daughter
Dear Worried,
In most cases when a person with debt dies, its their estate, not their kids, that is legally responsible. Heres how it works.
When your mom dies, her estate which consists of the stuff she owns while shes alive (home, car, cash, etc.) will be responsible for paying her debts. If she doesnt have enough cash to pay her debt…
Read the full article at: http://www.heraldextra.com/news/community/savvy-senior-can-i-inherit-my-parent-s-debt/article_1f5a0b98-b9f6-54c4-981f-06391329b079.html