That’s right. If the debts take up all the money, then there is nothing left to inherit. And if there isn’t enough money to pay all the debts, then the debtors go away unsatisfied. In no case do the heirs have any responsibility for the debts.
I should emphasize that this is in countries governed by English common law: the UK, Canada, the US, Australia, New Zealand, etc. I have no idea if it is true in countries following the Napoleonic Code, or anywhere else.
Don’t you inherit debt if you also inherit assets in excess of the debt?
Debts are discharged before heirs receive their inheritance.
No shit? I was not aware of that.
That’s right. If the debts take up all the money, then there is nothing left to inherit. And if there isn’t enough money to pay all the debts, then the debtors go away unsatisfied. In no case do the heirs have any responsibility for the debts.
I should emphasize that this is in countries governed by English common law: the UK, Canada, the US, Australia, New Zealand, etc. I have no idea if it is true in countries following the Napoleonic Code, or anywhere else.
Oh, you meant paid. By discharged I thought you meant cancelled. Yeah, that’s how I thought it worked.
You get what’s left over.
If you get left a house that’s 300k, but they had 250k in debt, you end up with 50k.
But if you get left a 300K house, and they had 500k in debt, you don’t owe 200k. You just don’t get the house.
You would have to pay off the 250 k debt though, if you want to keep the house. You can’t give the house away without paying the debt first.
The one inheriting the house may want to take a 250k loan to afford that 300k house.