Who is responsible for the debts of the deceased?

Q: When a parent dies does the child inherit debt?

Children typically do not inherit their parent's debts directly. Debts are paid from the deceased's estate. If the estate does not have enough assets to cover the debts, unsecured debts usually go unpaid. However, if a child inherits property tied to a debt, they may be responsible for that debt.

Q: Are parents responsible for adult children's debt?

Parents are generally not responsible for their adult children's debts. Adult children are legally accountable for their own debts unless a parent co-signed or guaranteed the debt. In most cases, creditors cannot pursue parents for debts incurred solely by their adult children.

Full question:

Who is responsible for the debts of the deceased? Can the adult children be held responsible or is it just the spouse?

Category: Debts and Credit
Date: 04/07/2025
State: Nevada

Answer:

A deceased's debts should be paid with the property in their estate (the property left at their death). Children don't inherit their parent's debts unless they created a co-signor/guarantor/surety/joint account relationship to the debt, so that the child's name is on the debt also, and it isn't a separate debt. Spouses will generally only be liable for a separate debt of the deceased if they live in a community property state. However, state laws vary about which marriage partner is responsible for certain debts, depending upon when the debt was incurred, the identity of the debtor, or the purpose of the debt.

Only after the debts are paid will the remaining assets be distributed among the beneficiaries of the will. Be advised that when a child inherits property that is collateral for a debt -- for example, a car that is not paid for or a house with a mortgage -- the debt comes with the property. If there is insufficient money or assets to pay all creditors, then the estate must be divided up as equally as possible, with secured creditors receiving priority. This means that if the deceased parent died with little or no money in their accounts and didn't own a home, unsecured debt, such as credit card debt will not be paid to the creditors.

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

What debt do you inherit from your parents?

You generally do not inherit your parents' debts unless you co-signed for them or are otherwise legally responsible. If your parent passes away, their debts are settled from their estate. If the estate lacks sufficient assets, unsecured debts, like credit card debt, may go unpaid. However, if you inherit property that has a loan, such as a house or car, you may inherit the associated debt as well.