Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

What happens to my debt after I die?

Perhaps you have a great deal of credit card debt or you are still making regular mortgage payments. In your later years, you may also have accrued significant medical debt. You know that you will not be able to repay all of your debt before you die. Like other Florida residents in the same position, you may be worried about whether your children will be required to pay off the debt you accrued during your lifetime.

NerdWallet may help to put some of these fears to rest. After your death, your estate will be used to repay creditors during the probate process, before the remainder of your estate is distributed among your heirs. If there is nothing left of the estate after creditors are paid, any remaining debt will not pass on to your loved ones – except for joint credit card accounts or loans in which you were a co-signer. If you co-signed on a child’s loan, he or she is responsible for continuing the payments. If you leave your home to a loved one, that relative can decide to continue making mortgage payments or to sell the home. The good news is that creditors cannot claim a portion of a life insurance policy you purchased for your children or retirement benefits.

You have many considerations with your estate planning, whether you have outstanding debt or want to maximize the inheritance your loved ones receive. The information in this blog is meant for educational purposes only. Therefore, it should not substitute for the advice of a lawyer.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Miami, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions