Can the children of a deceased person be held responsible for their outstanding debt?

Answer 1

No you are not responsible, but if your parent(s) left a Will and you are named Executor (male) Executrix (female) or someone else is and you are heirs in the Will (highly possible) then the Estate of your parent(s) meaning house, property, summer homes, monies, stocks/bonds, savings in banks, etc., will have to go to Probate. Probate makes sure that all taxes on any property are paid and all out-standing debts are paid first. What is left is divided according to the wishes of your parent(s) in the Will. It take approx. 1 year (or less) to Probate a Will. If you are named Executor/Executrix you will be informed, and if you are an heir in the Will you are entitled to a copy of the Will. Don't count on the fact that you were estranged from your parents and you're not in the Will because they can do odd things for their kids. My mother and I were estranged due to her having Dementia, but I was left money in her Will although she told me I would never see a cent. If in doubt, always see a lawyer to be sure you are in the Will as an heir and if not and you feel you are entitled to your share then you can "contest the Will" which can hold up the Will for 3 years or more depending on the amount of monies or properties (including business') left behind. If you have greedy siblings or relatives they really don't want to go down that road of contesting a Will ... they want their money now! They would be more than willing to settle with you. It's worth seeing a lawyer to be sure what you are entitled too. Hope things work out for you. Marcy

Answer 2

The court appointed executor of the estate must pay all outstanding bills and taxes prior to disbursing any remaining funds to the beneficiaries. If the person died intestate (with no will and no named executor) then the estate must go through probate and a judge will appoint an administrator for the estate. The executor/administrator is not personally responsible for the payments, he/she simply uses any assets left by the deceased.

If there are insufficient funds to pay off all the bills/debts then the remaining creditors are out of luck. The creditors can not go after anyone else for additional funds unless those people were also named on the debt. For example, if Mr. and Mrs. Smith were both on a credit card and Mr. Smith died, then Mrs. Smith is responsible for any remaining debt. But if the card was only under Mr. Smith's name, then Mrs. Smith owes nothing more than what the estate can pay out.

This is a very simple explanation of what happens because you asked a simple question. If the assets are in a Living Trust or they exceed a certain amount (depending on the state in which the deceased lived), for example, things could be a little more complicated. Also, if there is a house with a mortgage or an outstanding loan on a car, for example, the asset may need to be sold in order to repay the debt if there are insufficient assets left by the deceased.

Answer 3

Generally, yes. However, the debt is tied to the estate, not to the children, per se. Whoever receives the estate of deceased relatives is responsible for the debt of the deceased relatives. Usually that includes their children, but there are exceptional circumstances when that is not the case (usually because the child is disowned/disinherited and, therefore, does not have a right to the estate).

However, WikiAnswers is not an Attorney or a substitute for one. As a result, you should consult an Attorney with your particular situation for an answer that applies to you.

Answer 4

The estate is responsible for all the debts of the deceased. The children are not required to pay them from their own funds.