Which debts must be paid from the estate, the order of priority, what happens if the estate is insolvent, and whether family members inherit debts.
This guide is part of ProbateHelp's Probate Process guide cluster. Estimated reading time: 12 min.
This guide explains what happens to a deceased person's debts, which debts are normally paid from the estate, when family members are not personally liable, and why executors need a careful debt list before distributing money.
It connects debt questions with insolvent estates, creditor notices, executor liability, estate accounts, HMRC and the correct order for paying estate debts.
Also searched as: deceased debts; deceased person; deceased person debts.
No — not from your own money. The credit card debt is a liability of the estate. The estate must pay it before beneficiaries receive anything. If the estate does not have enough to cover it, the credit card company receives whatever is available and writes off the rest. You are not personally liable.
Yes, but only after all debts have been paid. As executor, you must pay all creditors first. Only then can you distribute the estate — including your own share as beneficiary.
It is an unsecured debt of the estate, like any other unsecured loan. Notify the lender of the death. They will submit a claim against the estate. It is paid after secured debts, funeral expenses, and taxes.
If the home was owned solely by the deceased and is part of the estate, it can be sold to pay debts — including a mortgage. If it was jointly owned and passes to the surviving owner by survivorship, it is not part of the estate and cannot be used to pay the deceased's debts.
Yes, in most cases. You need the grant of probate or letters of administration to deal with the estate's assets and liabilities. Some creditors will require it before accepting that the estate is insolvent.