If you pass away with unpaid bills, will your children inherit the debt? 

Any joint debts (for example, a credit card or mortgage held under two or more names) will remain valid when you die and the other joint owner(s) will be liable for the debt.

If there is debt in your name only, your children and other family members can’t be held liable for this. However, any creditors (people who you owe money to) have six months after you die in which they can make a claim on your estate. Until these claims have been settled, your assets can’t be distributed to your beneficiaries.

In other words, your children won’t be personally liable for debt left in your name after you die, but they will likely miss out on some or all of their inheritance if claims are made on your estate as a result of the debt.


Note: This post is brief and general in nature. You should not treat it as legal advice and should seek professional advice before taking any action in relation to the matters dealt with in this post. Armstrong Murray accepts no liability for losses suffered by any person or organisation who may rely directly or indirectly on this post.