If your parents run up a lot of bills before they die, you will not inherit their debt. But creditors can collect the proceeds from assets sold from the estate.
That means, if your parents owe $50,000 to creditors but own a house worth $60,000, heirs will only be able to inherit $10,000. On the other hand, if your parents die with a lot of debt and no assets, you won't be responsible for the debt. You will be responsible for any loan you co-signed.
Creditors can collect from a parent's estate even if property or stocks are promised to a child in a will. Insurance policies and retirement plans are generally protected, but that's all.
That means, if your parents owe $50,000 to creditors but own a house worth $60,000, heirs will only be able to inherit $10,000. On the other hand, if your parents die with a lot of debt and no assets, you won't be responsible for the debt. You will be responsible for any loan you co-signed.
Creditors can collect from a parent's estate even if property or stocks are promised to a child in a will. Insurance policies and retirement plans are generally protected, but that's all.
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