Will I also inherit my parents’ debt?

On Behalf of | May 27, 2019 | Uncategorized

In the years before your parents’ death, they may have accrued significant credit card and medical debt. Like other Connecticut residents in the same situation, you may wonder if you are required to continue making payments on the debt your parents left behind.

This can be especially true if you are receiving phone calls and letters from bill collectors asking for payment. They may even state that you are responsible for repaying your parents debt, which is understandably concerning. As NerdWallet explains, heirs do not legally inherit their parents’ debts, but creditors are not without recourse. Before you and the other beneficiaries receive an inheritance, your parents’ assets will be used to repay any outstanding debt. The family home, vehicles and other property may be liquidated for this purpose and distributed to creditors.

Will you be required to continue paying your parents’ mortgage or credit card bills? If you inherited their home, you may choose to take over the mortgage payments or sell the home. If you or your parents co-signed on a loan together, you would be responsible for making the payments. Any remaining debt that solely belonged to your parents, however, is not your responsibility. Additionally, creditors cannot make a claim on a life insurance policy your parents left for your benefit.

The steps to take after your parents pass away can be confusing and may necessitate experienced counsel. Therefore, the information in this blog is meant to inform you, but should not replace the advice of a lawyer.