--- title: Expecting to Die with Debt? Your Family Might Thank You for Reading This description: More than half of Americans expect to die with debts. Here's what happens to them and when survivors are responsible for repayment. authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 498 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Martha C. White role: Writer url: https://money.com/author/martha-c-white/ education: BA, English, Princeton University at_money_since: 2015 articles: 350 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Professional Services - Retirement - Shopping - Taxes - Technology published: '2025-09-18T20:27:35.000Z' section: Personal Finance tags: - News word_count: 851 canonical: https://money.com/die-with-debt-inherit/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Woman looking at bills with a worried expression](https://img.money.com/2024/11/News-Debt-Death.jpg) Two of the toughest topics to discuss with loved ones are death and money. A new survey shows just how far we'll go to avoid talking about these uncomfortable issues, and the consequences that can follow. Some 55% of Americans say they expect to pass on debt to a loved one when they die, according to a [survey from Debt.com](https://www.debt.com/research/funeral-debt/). In 74% of cases, the amount of debt they expect to leave behind is at least $5,000. “Most Americans don’t know which debts they inherit and which they don’t,” Don Silvestri, president of Debt.com, said in a statement. “The topic isn’t confusing; it’s just uncomfortable. So many of us avoid it entirely.” As a result, survivors can be left with unanswered questions. Here, we'll answer the most pressing: What happens to your debts when you die? And who gets stuck paying them off? ## If you owe over $20,000 in debt, a Debt Relief Program may be able to help get you back on your feet more quickly. ### Select your state to begin applying for Accredited's debt relief program. [Get Started](https://money.com/pr/kc21ef050576?ap_referrer=%2Fdie-with-debt-inherit%2F) ## Which debts can be inherited? In most cases when a loved one dies, you won’t be liable for their unpaid debts — but there are some exceptions, especially if you're a spouse or have shared accounts with your deceased relative. State laws can play a big role. (More on this below.) But generally speaking, when someone dies, their debts are paid by their estate; that is, the money, property and other assets they owned when they died. According to the Consumer Financial Protection Bureau, or CFPB, if the value of the estate isn't enough to pay off the person's debts, the lender is typically out of luck. A person's debts effectively die with them. But there are some debts that can be inherited, and some situations that require debts to be repaid, even after death. Here’s a look at the debts most likely to be passed on. ### Co-signed loans Just about any type of loan can be co-signed: [auto loans](https://money.com/best-auto-loan-rates/), [personal loans](https://money.com/best-personal-loans/) and more. When two people co-sign a loan, they are both equally responsible for the debt. So if one of the signatories dies before the debt is paid off, the other has to make the remaining payments. One common example is [private student loans](https://money.com/student-loans/). These loans are almost always co-signed by the parent of the student borrower. If the borrower dies, the parent could be liable for the remaining debt. While some lenders of private student loans have policies that forgive the remaining balance if the borrower dies, they are under no obligation to offer this. Federal student loans, on the other hand, are always [discharged if the borrower dies](https://studentaid.gov/manage-loans/forgiveness-cancellation/death). ### Jointly-owned credit cards If you have a joint credit card with someone who dies, you'll inherit the responsibility for paying off the outstanding balance on that card. The rules are different, though, if you're just an authorized user of a card and the primary cardholder dies. In that case, you will need to stop using the card immediately, but you won't be responsible for paying off the balance that accrued before they died. ### Inherited property If you inherit a car or a house that hasn't been paid off, you are responsible for continuing payments on the loan(s). Houses can be foreclosed on and cars can be repossessed by lenders if the owner dies and the estate or family members don't pay them off. Usually, inheritances such as these are spelled out in a will, meaning the debt doesn't simply pass to a surviving family member unexpectedly. If there is no will, the property will divided up in court and distributed to family members after the estate's debts have been settled. In some cases, the property might need to be sold to cover the estate's debt. ### Community property debt held by a spouse According to the CFPB, you are generally not responsible for your spouse's debts if they die. Here are some exceptions to that rule of thumb. Aside from co-signed loans and jointly-owned accounts mentioned above, surviving spouses might end up liable for so-called “community property” debt. In states that have community property rules, debts that are incurred during the marriage are generally both people's responsibility by default. So if one spouse dies, creditors will try to collect from the surviving spouse. According to the insurance firm MetLife, [nine states](https://www.metlife.com/stories/legal/prenuptial-agreement/) have community property rules: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. If you live in one of these states and do not have a [prenuptial agreement](https://money.com/prenups-what-to-include/) that addresses how property, assets and debts are split up, you could end up responsible for all the debts incurred during the marriage, regardless of which spouse took out the initial loan. Dealing with the death of a loved one can be devastating on its own. Inheriting debt on top of that only makes matters worse. If you're unsure of what you owe creditors after the death of a loved one, consult a lawyer with expertise in estate planning to help you navigate debt obligations. *Editor's note: Money originally published this article on Nov 21, 2024.* ## Reduce payments and make debt manageable with a Debt Relief program ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/25289/medium_2e7b27ce-b30d-40a3-beef-0139ecba6b47.png) Our Partner [VISIT SITE](https://money.com/go/b668c4ab744d?bidid=4051509834&pmeta=p129-c628-u31158&ptid=664581248&ptoken=e556eef40fb9e0fb84e25bd82fef83e9) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/23879/medium_3847e650-29eb-411b-9b8c-05deb0d02cbc.png) Our Partner [VISIT SITE](https://money.com/go/3480cce1f3d1?bidid=4051509835&pmeta=p129-c628-u31158&ptid=664581248&ptoken=3770038465eaccc4527febc4ed54747a) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/15565/medium_832cc4b7-74f8-4735-8fe1-6917816cbe8d.png) Our Partner [VISIT SITE](https://money.com/go/1df235c20100?bidid=4051509833&pmeta=p129-c628-u31158&ptid=664581248&ptoken=d0799a1ff89c9c3374760051bbf024e8) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/22445/medium_ba73f26a-1e1e-4e49-9739-df1298783de6.png) Our Partner [VISIT SITE](https://money.com/go/07b827f033b6?bidid=4051509838&pmeta=p129-c628-u31158&ptid=664581248&ptoken=8ffcb2ee5973acd6e52818f7414ceb59) ![VISIT SITE](https://s3.consumersadvocate.org/prd/image/image/9246/medium_94931930-28cf-46b5-b09d-683979caec81.png) Our Partner [VISIT SITE](https://money.com/go/11d8b2173779?bidid=4051509836&pmeta=p129-c628-u31158&ptid=664581248&ptoken=b6213ae3a73b8e397f930104bfff6c80) ![](https://s3.consumersadvocate.org/prd/image/image/25289/medium_2e7b27ce-b30d-40a3-beef-0139ecba6b47.png) If you owe over $20,000 or more, Freedom Debt Relief can help you get back on your feet! [Get Started](https://money.com/pr/u5c2defb44d4?ap_referrer=%2Fdie-with-debt-inherit%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/die-with-debt-inherit/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Personal Finance", "item": "https://money.com/personal-finance/" }, { "@type": "ListItem", "position": 3, "name": "Debt Management", "item": "https://money.com/debt-management/" }, { "@type": "ListItem", "position": 4, "name": "Expecting to Die with Debt? 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