Who is liable for a deceased person's debts?

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:

Debts of a deceased person are paid from their estate, which includes the property they left behind. Generally, children are not responsible for their parent's debts unless they co-signed or are otherwise linked to the debt. Spouses may only be liable for the deceased's separate debts if they reside in a community property state. State laws differ regarding which spouse is accountable for specific debts based on when the debt was incurred and the identity of the debtor.

After debts are settled, any remaining assets are distributed to the beneficiaries of the will. If a child inherits property that secures a debt, such as a car with an outstanding loan or a house with a mortgage, they inherit the debt along with the property. If the estate lacks sufficient funds or assets to cover all debts, it will be divided as fairly as possible, prioritizing secured creditors. Thus, if a deceased parent had minimal funds and no home, unsecured debts, like credit card debt, typically won't be paid.

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.