If you are the next of kin for someone in debt, do you assume their debt?

Question

If you are the next of kin for someone in debt, do you assume their debt?

Answer 1

I need more info to answer precisely.  What kind of debt?  Is the person a family member, child, or spouse?  I think in most cases the answer is no.  You can not inherit someone else's credit card debt, unless you are a co-signer on said loan.  Federal debt may be different.  The federal government may come after family members for payment (taxes, federally owned student loans).  Most creditors will go after the estate to settle debts so you may not get any inheritance.  If there is no estate most creditors will be out their money.  They may contact you and say you have to pay, but in most cases YOU do not legally owe the money.  The creditors may hound you or other family members because they don't want to lose money.    If this happens I would contact an attorney.  Then you will be able to give the creditors your attorney's name and that may stop any collection calls.  

Answer 2

The executor of the estate will satisfy all debts before distributing any assets.  If there are no assets, the debt generally doesn't get passed on.

Answer 3

Parents are liable for their minor children's actions, debts, misdoings, etc.  Other than that, no debt incurred by an adult is the obligation of any other adult unless the second party co-signed or it was a joint obligation of, for example, a husband & wife or business partners in a partnership.

For a person who is deceased, their estate must pay all outstanding bills before anything is distributed to the heirs.  This is why there is probate.  But the next of kin or other heirs are not liable for any debts of the deceased except those they signed jointly or co-signed.

Example: Adult child pays for elderly mother's nursing home, and signed the agreement with the nursing home and has been paying the bills.  When mother dies, child pays off the nursing home balance.  But say Mom had a personal credit card she used for personal expenses which she paid out of her Social Security.  Mom dies, balance of credit card bill is paid out of the estate.  If Mom didn't leave enough money and assets behind to pay off the balance, tough cookies for the credit card company.  There is no recourse to the adult child who paid the nursing home for Mom, or to anyone else.