Debts after someone dies: do I have to pay?
In most cases you do not inherit someone’s debts. Here is who pays, what happens if there is not enough money, and what to say to creditors.
Applies to: England, Wales & Northern Ireland
What to do now
- Tell creditors about the death in writing and send a copy of the death certificate if asked.
- Do not pay any of the person’s debts from your own money unless you are sure you are liable.
- If you are the executor, do not hand out the estate until debts are dealt with.
Who pays
- The estate. Debts in the person’s sole name are paid from what they left.
- Joint debts. A joint loan, overdraft or mortgage usually becomes the surviving borrower’s responsibility in full.
- Guarantors. If you guaranteed a loan, the lender can ask you to pay.
- Executors and administrators. You are not liable for the debts personally, but you can be if you distribute the estate without paying them or advertising for creditors where needed.
If there is not enough money
If the debts are more than the estate is worth, the estate is insolvent. Secured lenders are paid first from the property their loan is secured on. From the rest, reasonable funeral and administration costs come first, then preferential debts (such as wages owed to employees, or some taxes if the person ran a business), then ordinary unsecured debts like credit cards, which may receive only part or nothing. Get advice before paying anything from an insolvent estate.
If creditors contact you
Firms must treat bereaved people sensitively and must not suggest you are liable if you are not. You can say: “I am not responsible for this debt personally. Please deal with the executor, in writing.” Many lenders have specialist bereavement teams. If contact feels like pressure.
The home and council tax
A mortgage must still be paid, usually from the estate or by a surviving joint owner. Council tax rules for empty homes after a death can include exemptions; ask the council for the property. Find the council.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Do I inherit my parents' debt?
No, not unless the debt was joint or you guaranteed it. Debts are paid from the estate. If the estate cannot cover them, the remaining debts are usually written off.
Do I have to pay my late partner's credit card?
Only if the card was joint or you were a guarantor. An additional cardholder is usually not liable for the main cardholder's balance.
Can creditors chase family members for a dead person's debt?
They can contact the executor or next of kin to deal with the estate, but they must not pressure you or suggest you are personally liable when you are not.