Losing a parent is obviously a devastating blow. Some debt collectors may convince you that you have to pay a deceased parent’s debt. In most circumstances, this isn’t true, but you should know when you might be on the hook for some bills.
CNN Money reminds us that unless we co-signed on an item, it’s unlikely we’ll be responsible for any debt after one of our parents passes on. That’s the estate’s problem.
With medical debt, the rules are sometimes different. In 29 states, the debt may be yours due to “Filial Responsibility.” The laws vary within these states and the circumstances that you inherit the debt are pretty limited, so it’s wise to check it out if you are concerned.
Knowing which debts you can inherit is important because debt collectors may trick you into thinking “filial responsibility” applies to credit card or other unsecured debts. It doesn’t.
Check out the link for other facts to know about debt inheritance when a parent dies.
Photo by Pedro Ribeiro Simões.