Who assumes someone's debt after they die?

Question

My grandmother just admitted to me that she's tens of thousands of dollars in debt... When she dies will that debt fall on my mother (her daughter)? My grandmother is a widow and lives with my mother, and my mother is really in no place financially to take on such a burden. I'm surprised my grandmother kept this hidden from us for so long...

Answer 1

I assume your grandma has no assets since she lives with your mom. So I also assume you are talking about credit card debt. As long as your mom is not a joint account holder with your grandma on any of these debts, AND as long as your grandma is not a joint owner with your mom on your mom's house or anything else your mom owns, they cannot touch your mom. They usually try though, just through harassment by mail and phone. If it comes to that, tell your mom to tell them to leave her alone, she knows her rights.

And if your mom and grandma are joint on anything, they need to talk to an attorney now to minimize your mom's damages when grandma passes.

Answer 2

No one assumes another person's individual debt when they die, although joint debt, as in a loan with more than one guarantor, falls to the surviving guarantor.

When someone dies their assets will be used to satisfy any outstanding debt that they had at the time of death. After all debt's are paid the balance of the estate is distributed to the heirs.

If your mother has cosigned any loans for your grandmother, or if your grandmother is listed on any of your mother's assets you may have reason to be concerned, otherwise you need to simply be prepared to satisfy as many debts as possible at her time of death, from the assets she has.

An estate lawyer would help immensely in walking you through the process. Also - make sure your grandmother has a will. It should provide a list of assets, making it easier to determine how the debt can be paid.

One last point, your grandmother may choose to gift any unencumbered (not used to secure a loan) assets she currently has prior to her death. As long as this is done in good faith those gifts would no longer be considered part of her estate. Something to consider.

Answer 3

As long as your Mother didn't co-sign for any of your grandmother's debt, your Mother will not be responsible to pay for it. If your grandmother has a will, you never know, she might have money stashed in something that will pay off her debts. However, if she doesn't, all her assets (if any) will go through probate court. Creditors will be paid if there is money available or they will have to write it off.

Answer 4

Nobody. I believe that when you die you get a death certificate ( or something of the sort) to show whomever that the person is dead, and should (9 times out of 10) once showed take care of the debt. They may- if anything(car house)- try to take anything worth value that is in her name. sorry couldn't be more useful. good luck.

Answer 5

Her estate will have to settle her debits. Many times those debits are forgiven but sometimes a company still wants what it is owed. You'll have to talk to a probate lawyer to determine just what has to be paid and what won't be covered.

Answer 6

Children are not responsible for the bills of their parents nor are parents responsible for the bills of the adult children.

When you grandmother dies, tell your mother DO NOT ACCEPT any responsibility for her mother's bills. They can't come after your mother UNLESS she accepts the liability.

Answer 7

Well it goes to the next of kin. Get some good insurance on her and let that pay for it!

Answer 8

Normally the close relatives like wife, children etc who are his/her legal heirs they inherit the diseased's wealth and debt.