General Question

luminous00's avatar

does parents debt pass on to the children

Asked by luminous00 (350points) March 10th, 2008 from iPhone

my grandparents are hugely in debt, and my grandfather just passed, does the debt stop once my grandmother dies or does it carry on?

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3 Answers

cwilbur's avatar

Debt generally gets reconciled with the estate, so that when your grandmother dies all her remaining assets will be used to pay off the debt and then the other creditors will just go away empty-handed. There are lots of potential exceptions to this, and it may vary considerably by state, so if you want an answer for financial planning purposes, you or your parents should really talk to a lawyer or accountant.

scamp's avatar

My fiance was the executor for his Uncle’s estate. During the time of probate, An ad has to go into the paper notifying creditors who the acting attorney is. They have a certain time in which to file a claim against the estate. If they don’t file, they don’t get paid. But as cwilbur said, the money comes out of the estate, not from the heirs.

gorillapaws's avatar

Now the national debt on the other hand…..
Thanks for passing on 50 years of deficit spending to me mom/dad, grandma/grandpa!

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