parents in debt

[LFrancis]

My parents are in huge debt, soon to be millions. They live in Texas, and I live in Canada. If they die and their estate does not cover what they owe, does that debt pass on to me in any way? I am in their will, they plan to leave everything to myself and my sister.

L.F.

 

[advisor10]

12-28-2001

DEAR LFRANCIS:

You can relax--the debt will not be passed on to you--only they and/or their estate can be held responsible. You may want to ask them to consult with a Texas probate attorney and/or accountant to figure out a strategy to protect their assets to insure that the major assets are protected from the creditors, and to let you know what the strategies are so that you will know how to get your hands on what is coming to you at the proper time.

The creditors will file a claim against the estate, but if there are not enough assets in the estate, the estate will technically be considered bankrupt. But you can be assured that the larger creditors will file a claim against the estate to recover anything, if possible.