You may be wondering what happens to your debt once you pass away? Estate planning and probate attorney Kyle Robbins explains how your debt will be affected once you pass.
Video Transcript:
Hey everyone, Kyle Robbins here with the law offices of Kyle Robbins.
So what happens to your debt when you pass away? Well, technically you, your assets, when you pass away, go into your estate. And so your family is not liable for that debt personally, it’s not going to affect their credit. However, your estate is liable. So whoever is controlling your estate, whether that’s your executor or your trustee, they’re responsible for dealing with your creditors and paying off your creditors before they hand the assets over to your family members.
Now in probate, there are a lot of things we can do to potentially either negotiate down those debts or even sometimes make them go away completely. So working with a probate attorney very often will protect the estate against creditors and the estate winds up owing a lot less than they otherwise would have.