Are Children Responsible For Parents’ Debts After They’ve Died?

Survivors typically aren’t responsible for their parents’ debts.  Yet, they may still have to deal with aggressive collection agencies and the expense of settling the estate.  Children are not responsible for their parents’ unsecured debts.  These include credit card debt, personal loans, and medical bills unless they had agreed to take on the responsibility.  Secured debts, such as loans that are attached to an asset such as a house or car are a different story.  Those payments must be made, or the lender can repossess the asset.  If your folks had any equity in a car or house, you need to make finding the money to pay for these a priority. Do not make the mistake of counting on life insurance or retirement accounts to cover their debts.  These assets have designated beneficiaries and the money goes directly to those people without passing through probate or other estate settlement processes.