Legal Question in Credit and Debt Law in Missouri

Re: If my name's on house, Am I responsible?

You are liable only on debts that you incur and you sign the note for.

If your parents add you to the house it makes it possible for the house to go to you on their death outside of probate. You won't need a court order to make the house yours. If the house is free and clear, and it passes to you outside of probate, it cannot be used to pay the expenses of your parents after death.

If both parents signed the note for the loan that remains, then both parents are obligated to pay on it. If one or both died, the obligation to pay would devolve to their "estate" which is an entity created by the state to collect the debts and assets of a person after death. If the major assets pass outside of probate (for example, the house, the cars, and any insurance), then there is often no need for a probate estate. A creditor trying to collect the $20,000 could force an estate open, but if the decedent had no assets, would likely not collect anything.

The estate, and not the heirs, becomes liable for the debts of a person after their death. Debts do not pass on to the heirs, however, nothing can be paid out of the estate to the heirs until all debts have been settled.