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Inheriting debt

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R

runnergirl

Guest
Is it true that if your parent dies with a mountain of debt, more than the estate is worth, the debt goes to the children to pay?
 


ALawyer

Senior Member
Nope. The debt is paid from the assets of the deceased, and if all of the assets are used to pay the debts, then the kids get nothing. Kids don't pay for their parents' debt UNLESS they took money or other assets from the parents shortly before the death in which case they are liable to the extent of the value of the assets they received (it's like a fraud on creditors) OR they guaranteed their parents' debt.
 

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