Legal Question in Wills and Trusts in California

The estate is liable for debts of the decedent, not the heirs. So, if you leave $100,000 to your son in a will, and you have $125,000, but you have $150,000 in debts, your son doesn't have to come up with $25,000. He just gets nothing. If you had $100,000 in debts he would get $25,000. So you may as well name someone in case your finances improve before you die. If your debts are more than your entire assets, however, it sounds like you are a candiated for bankruptcy. If you die bankrupt, the estate cannot declare bankruptcy to protect anything for the heirs. If you do it before you die, some assets are exempt and you could keep them for yourself and/or your heirs. When you die, it's too late for that.

The heirs don't become liable for a decedent's debts, unless they take property from the decedent's estate without paying lawful claims and debts.

Prior to someone's death, a third party only becomes personally liable on a promissory note by assuming the note (which requires the lender's permission and paperwork) or by guaranteeing the note.