By: Jeanne Sahadi
For adult children, the death of a parent is a fraught experience. Adding to the stress: the unwelcome surprise that Mom or Dad died with big debts.
Who is on the hook to pay them?
Unless you cosigned one of your parent’s loans or accounts, it’s usually the estate, not you.
Usually. Not always. The rules are complex and differ depending on the type of debt and where your parent lived.
Creditors typically have a fixed period of time — usually between two and six months — to make claims against your parent’s estate.
If there’s not enough money to cover the debt, in many instances “[your parents’] debt will die with them,” said certified financial planner Mari Adam of Adam Financial Associates. Continue reading