Is it possible in the U.S. to inherit parental debt? e.g. unpaid
mortgage and consumer debt?

A yes/no answer is enough, provided it has at least one link to a
reputable legal source.

Many thanks,
gwagner-ga

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Request for Question Clarification by serenata-ga on 06 Nov 2003 17:38 PST

Hello GWagner ~

As a rule, one does not inherit parental debt, however there is
usually a requirement to apply assets toward payment of the debt
before assets can be distributed to a Deceased's children.

For instance, a mortgage would be required to be paid, either by
selling the house or assuming the debt. The same would be true for
consumer debt.

Which state are you talking about? It might be easier to direct you to
probate and/or intestate provisions of that state's code.

Serenata

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Clarification of Question by gwagner-ga on 06 Nov 2003 17:45 PST

Hi Serenata,

Thanks for your quick posting. The state in question is New York.
(That's where the parents live.) Three children are legal residents of
New York; one of Massachusetts. All four are over 21, if that makes a
difference. The house can be sold, but there are not enough assets to
repay all of the consumer debt.

Thanks!
gwagner-ga

Hello and thank you for your question.

No, you cannot inherit debt.  Any personal liability is limited to the
value of property received by you from the estate.

"S 12-1.1 Liability of distributees and testamentary beneficiaries
  (a) Subject to the other provisions of this article, distributees and
testamentary beneficiaries are liable, in an action, to the extent of
the value of any property received by them as such, for the debts and
reasonable funeral expenses of a decedent, the expenses of administering
his estate and all taxes for which the estate is liable...."
New York Estates, Powers & Trusts Law
LIABILITY OF DISTRIBUTEES AND TESTAMENTARY BENEFICIARIES AND ACTION THEREON
http://caselaw.lp.findlaw.com/nycodes/c38/a65.html

Search terms used:
insolvent "new york" "estates powers and trusts law"

Thanks again for bringing us your question.  I hope you find my answer useful.
Google Answers Researcher
Richard-ga

Concise and quick response. Thanks! (Although, as a fellow researcher,
I do have to say that I thought Serenata had "locked" the question by
posting the specific Clarification Request.)

If a child is born this minute it will inherit a debt which was
created by the excesses of those who came before it.  See
http://www.brillig.com/debt_clock/

The National debt at the moment of this posting is  $6,866,765,935,891.67.  

The estimated population of the United States is 292,454,896
so each citizen's share of this debt is $23,479.74.  Most of which was inherited.