Many people worry about what will happen to their debts after they die. Often, they are concerned that their family members will be responsible for paying off the debt.
What happens to your debts after you have died, depends on whether:
If there is a will, an executor will have been named. This person takes on responsibility for locating the money and property left behind (called the estate) and paying any debts or liabilities, before distributing the remainder of the estate to people named in the will as beneficiaries. (For more information on the responsibilities of an executor, see Your role as executor.) If there is no will, your next of kin can decide who will administer the estate. They can either administer it themselves or engage a lawyer to assist them.
Paying off debts
When a person dies, any outstanding debts are paid off by any money or property left behind. This is known as their estate. The executor in the will divides up the estate, and gives the assets to the beneficiaries.
The executor must advertise in the newspaper for any creditors to come forward.
Other people are only responsible for paying the debts if:
The difference between secured and unsecured debts
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