Hello.
There's no "inheritance of debt" in either Canada or the United
States. A deceased person's debts are chargeable against his estate
(i.e., the assets that he owns at death). The creditors of the
deceased person can make a claim against the assets of the estate, but
if the assets of the estate are insufficient to pay those debts, then
the creditors can't try to collect the debt from the decedent's
children.
As financial advice columnist Gary Foreman explains:
"Can someone die and 'leave' their debts to you? The answer is no.
Parents can't leave their debts to you."
For more information, see the complete article at Stretcher.com:
http://www.stretcher.com/stories/01/011029d.cfm
Note that Foreman points out that it would be a different situation if
the children had contractually agreed to pay the parent's debts (i.e.,
by co-signing on a loan or taking out a joint credit card).
Also see this Q & A from legal advice site Nolo.com:
" QUESTION: My mother died. Who is responsible for her credit card
bills and so forth? When I notify them of her death, will that make me
responsible?
ANSWER: Your mother's debts should be paid with the property in her
estate -- that is, the property she left at her death. You have not
inherited these debts.
However, if you inherit property that is collateral for a debt -- for
example, a car that is not paid for or a house with a mortgage -- the
debt comes with the property."
http://www.nolo.com/lawcenter/auntie/questions.cfm/objectID/0DCF5EBD-4FC7-488B-A7841D21F9256065/catID/C0A090EC-1E01-4B51-8FB8D7727BF91358
search strategy: "inherited debts"
I hope this helps. |