Liz Weston: How your parents’ debt could outlive them
By LIZ WESTON of NerdWallet
Adult children typically don’t have to pay their deceased parents’ bills, but if the amounts owed are more than what is left in the estate, there are cases where an adult child might be responsible for paying. These situations include if they co-signed a loan or were legally responsible for settling the estate and didn’t follow state law. Even if debts owed don’t wipe out the estate, they can significantly reduce what heirs receive. And debt collectors are allowed to contact family members who have no obligation to pay. If you’re concerned that your parents’ debts might outlive them, consider talking to an estate planning attorney for personalized legal advice.
