DAL Law Firm: What happens to your debts after you pass?
The short answer? Your debt doesn’t automatically disappear – but it doesn’t get passed to your family either (in most cases).
Here’s how it really works:
Debts Don’t Die—But People Don’t Inherit Them
When you pass away, your debts are generally paid from your estate—meaning the money and property you leave behind. This process is part of something called estate administration, where your bills are paid and whatever is left is passed on to your heirs. If you have a Trust, your Trust will pay your final debts before making distributions to your heirs.
What Kinds of Debts Get Paid?
Your estate may need to pay:
- Credit card balances
- Medical bills
- Personal loans
- Taxes
- Car loans – are attached to the vehicle itself
- Mortgages – are attached to the real property itself and the heir(s) may be able to continue with the monthly payments or if the home is sold, it will get paid in full at closing of the sale.
Will My Family Be Stuck Paying My Debts?
In most cases, no.
Your family members are not responsible for paying your debts from their own money unless:
- They co-signed the loan with you
- They are a joint account holder (not just an authorized user)
- They live in a community property state and the debt was taken on during the marriage (Washington is one)
But even in those cases, it depends on the specific type of debt and how assets were owned.
What If There Isn’t Enough Money in My Estate?
If there’s not enough to pay all of your debts, your estate is considered insolvent. Creditors may only receive partial payments—or nothing at all. Your family still does not inherit those unpaid balances.
What Can You Do Now?
Planning ahead can help protect your loved ones and make the process smoother:
- Make a list of all your debts
- Talk to an estate planning attorney about how those debts will be handled
- Make sure your estate has enough funds to cover expenses
Bottom line: Most debts don’t pass to your family, but they do need to be paid after your passing. Planning ahead can give you peace of mind—and give your loved ones a smoother path forward.
At DAL Law Firm, we make the process of creating an estate plan simple and approachable. If you’re not sure where to start, we’re here to help. Our telephone number is (206) 408-8158. You can also learn more about our services by visiting our YouTube channel at https://www.youtube.com/@dallawfirm
You can also learn more about our services by visiting our website:
https://www.dallawfirm.com
Contact us:
19803 1st Avenue S.
Suite 200
Normandy Park, WA 98148T (206) 408-8158
F (206) 374-2810
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