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Wills and Estates
Can creditors file a lien on a willed family home?

Can creditors file a lien on a willed family home?

Q: Do people inherit their parents' debt?

Inheriting a parent's debt is not common. Generally, children do not inherit their parents' debts unless they were co-signers or jointly liable. Instead, the deceased's estate is responsible for settling debts during probate. If the estate lacks sufficient assets, creditors may not be able to claim against the heirs.

Full question:

My mother died and she willed her home to her children. If we keep the home in the family and not sell it, can someone filed a lien or get money for credit cards or other debt she owed?

Category: Wills and Estates
Subcategory: Probate
Date: 04/07/2025
State: North Carolina

Answer:

Probate law governs how an estate is handled after someone passes away. This includes ensuring creditors are paid and assets are distributed to heirs. The probate process starts with a petition to open the estate and appoint a personal representative to manage the deceased's property.

Next, an official Notice of Creditors is published in a local newspaper, and a Notice of Administration is sent to involved parties. Creditors have a specific time frame to file their claims from the date of publication. The personal representative can then pay the debts and distribute the remaining assets of the estate. Finally, a petition for discharge is filed to close the estate.

If your mother had debts, creditors may be able to make claims against her estate, even if you keep the home in the family. It’s important to address these debts during the probate process.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Are adult children responsible for deceased parents' debt?

Generally, adult children are not responsible for their deceased parents' debts unless they co-signed on the debt or are a joint account holder. Debts are typically paid from the deceased's estate during the probate process. If the estate does not have enough assets to cover the debts, creditors may not pursue family members for payment. It's important to consult with a probate attorney for specific guidance based on the situation.

What debts are forgiven at death?

At death, certain debts may be forgiven, such as credit card debts and personal loans, if there are insufficient assets in the estate to cover them. However, secured debts like mortgages may need to be settled if the estate has enough assets. The probate process will determine which debts are paid and which may be forgiven based on the estate's value.

Do people inherit their parents' debt?

When a parent dies, does the child inherit debt?

Typically, children do not inherit their parent's debt. The deceased's estate is responsible for paying off debts during the probate process. If the estate does not have enough assets, creditors may not pursue the children for payment. However, if a child co-signed a loan or is otherwise liable, they may be responsible for that specific debt.