Whose responsible for my debt when I die?

[Marroni]

I am single, but over 21 and considered an adult in Illinois. I do not live with my parents any longer.

I currently owe money on a credit card and for a car loan. If I should die before those debts are paid in full, who, if anyone, is responsible for those debts? What kind of debts are estates responsible to pay back? How long do you have to pay back said debts?

If I create a will or trust and name someone outside my family as an executor and beneficiary to most of my assets does that change who is responsible for my debts?

Is there any pitfalls I should lookout for when dealing with debts after death?

 

[dmode101]

After a person's death, his "estate" is responsible for paying any debts prior to distrubuting to the persons' beneficiaries or heirs. If the prson leaves no estate, or if the debts are greater than the estate value, then those creditors will generally be out of luck. They will not be able to go after parents or children or others, unless someone else actaully co-signed on the loan.

The will or trust doesn't really change who is responsible for the debts...the estate is responsible, but you do designate in your will or trust who is the person that will be in charge of running the estate or trust.