Some of them go to the grave, too.
“If you have unsecured debt, the debt’s going to die with you,” says insolvency counsellor Margaret Johnson, president of Solutions Credit Counselling Service Inc. “Nobody has to take it over and pay it. Debts don’t transfer by virtue of death or marriage.
“However, if you leave an estate, the executor of your estate will have to deal with any debt before assets are distributed to any beneficiaries,” she adds.
So let’s start with that unsecured debt, meaning anything that’s not backed by an underlying asset. Think credit-cards and utility bills.
The power of your signature
“Unless you have signed a contract or co-signed for something, you do not need to take over someone’s debt when they die,” Johnson says. “No one can leave their debts to you or to their spouse. Unless you have signed for the debt, it isRead More »from Debt and death: Who owes what to whom?