Legal Question in Credit and Debt Law in Arizona
Outstanding Debt upon death
We have a parent who is not fiscally responsible. We fear this person will run up significant debt prior to their passing. When they are ultimately gone, what would happen to this hypothetical debt? Are the children responsible in any way?
1 Answer from Attorneys
Re: Outstanding Debt upon death
You asked about what happens to the debt of your elderly parent when s/he passes?
It depends. If the debt is secured in any manner, such as a mortgage or lien, then the security would be foreclosed. If the debt is unsecured then the the decedent's estate would be used to pay the debts. If that is insufficient the debtors often will contact the next of kin in a futile attempt to collect. Problem is that sometimes that works.
If a decedent's estate is insufficient to cover outstanding debts, and there is no insurance for such a purpose then those liabilities find their grave also.
You should be more concerned about your parent's welfare while still alive. Irresponsible soending can be symptomatic of mental disease. Or it could just be that your parent realized that s/he earned the money and has the right to spend it any way they wish. And they would rather not leave any money behind.
Regards,
Roger Traversa
Email: [email protected]
Phone: 215.279.8940
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