You may be concerned about passing debt to your adult children when you pass away. You know that they are going to inherit your assets, such as your bank account, your house, your car, family heirlooms and much more. But you may also have significant debt such as medical bills, credit card bills or even a home mortgage.
If that is the case, do you have to worry that your children are going to inherit your debt? Will they have to pay off these financial obligations in your name?
Debt is generally not inherited
No, most of the time, debt will not be inherited. There are some exceptions, such as if you cosigned a loan with one of your adult children. Additionally, if a child inherits a house with a mortgage, then they do have to take on those mortgage payments or sell the home.
But the way that debt is generally handled is that the estate executor uses your own money to pay off the debts when you pass away. They are the one who will make your final credit card payment or income tax payments, for example. They may have to pay property taxes or make final payments for utilities or phone bills.
Even when the executor has to do this, however, they are not asking your adult children for financial contributions. They are just using the money that is already within your estate, so you are essentially paying these debts yourself.
It is important to choose the right person as your estate executor and to pl
