What happens to debt when someone dies? A clear guide

Losing someone is hard enough without worrying about their debts. Here's the truth: you almost certainly don't inherit their debts.

The key rule

**You are NOT responsible for someone else's debts** simply because they're a family member. Debts belong to the person who took them out — or to their estate after death.

What actually happens

Debts are paid from the estate

When someone dies, their debts are paid from their estate (savings, property, investments) before any inheritance is distributed. If the estate can't cover the debts, the remaining debts are written off.

Joint debts are different

If you had a **joint debt** with the deceased (joint mortgage, joint credit card, joint loan), you become responsible for the full amount.

Guaranteed debts

If you acted as a **guarantor** for their debt, you're responsible for repaying it.

What creditors might try

Some creditors may contact family members implying they should pay. Know this:

Dealing with a deceased person's estate

If you're the executor or administrator:

1. Notify all creditors of the death

2. Place a notice in The Gazette (this protects you from unknown creditors)

3. Pay debts from the estate in the correct order (funeral expenses first, then secured debts, then unsecured)

4. If the estate is insolvent (debts exceed assets), get legal advice

Getting help