Where Does Debt Go When You Die?

Photo by frankieleon

Unfortunately, your debt can remain alive and well even after you’re gone. While this doesn’t necessarily mean your kids or your spouse will inherit a financial mess, in some cases, they could be responsible for some of the debt you leave behind.

When you die, you typically leave your estate (all the stuff you own, including investments) to someone you trust, like your spouse or your kids. This person is called the estate’s executor, and the executor is responsible for using your assets to pay off bills and debt. For example, if you have $100,000 in savings and owe $5,000 in bills and credit card debt, that $100,000 will be used to pay both.

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But let’s say you don’t have anything but bills and debt.

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