Summary of “What Happens to Your Debts When You Die”

Of the many downsides of death you could name, you might think an upside is that you no longer have to worry about the massive pile of debt you’ve accumulated over your life-almost $62,000, on average, according to a 2017 report from Credit.com-from astronomical health care bills to the mortgage on the house you couldn’t afford to your tens of thousands of dollars of student loan debt.
Before you pass on money to your heirs, your debts are repaid.
An executor handles all of this, and will pay off your debts with your estate.
Because mortgages are secured debt, lenders get first dibs on your assets to recoup their loan.
If the estate can’t cover the cost of the debt and you have a co-signer, they’re responsible for the rest of the loan.
Credit card debt isn’t secured, meaning if the estate runs out of funds after the mortgage and car loans, there’s nothing for creditors to sell to get their money back.
If not, the debt may die with you, unless you live in a community property state.
If there’s money in your estate, that’ll be put toward private student loan debt.

The orginal article.