These are the biggest misconceptions about inherited debt, according to experts
Summary
When a person dies, most of their debt does not automatically become the responsibility of their heirs. Some debts, like co-signed loans or mortgages on inherited property, may need to be paid by the heirs or co-borrowers, but many types of debt are usually paid off by the deceased person’s estate.Key Facts
- The total U.S. consumer debt reached $18.23 trillion in May 2026, with $1.1 trillion from credit cards.
- Not all types of debt transfer to heirs after someone dies; usually, the deceased’s estate pays off debts.
- If you co-signed a loan or are a joint account holder, you may have to repay the deceased person’s debt.
- In some states like Texas, California, and Arizona, spouses may inherit a deceased partner’s debt due to community property laws.
- Mortgages on inherited property must be paid if you want to keep the property; otherwise, the property usually must be sold.
- If you co-signed or jointly hold debt, you can try negotiating better payment terms with the lender.
- Selling the asset tied to the debt, like a car or house, is another way to handle inherited debt responsibility.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
