Our team has the right experience to help you deal with debt after death.
Losing a loved one is always difficult, but it can be made even more difficult if you are worried about inheriting your loved one’s debts. If your loved one died in debt, you can turn to our team at Morgan & Partners Inc.—we have over 25 years of experience in the financial industry, and we can help you figure out what do to about these debts.
The first thing you need to know about debt after death in Canada is that, in most cases, you cannot inherit someone else’s debt after they die. Instead, any of the deceased’s outstanding debts will be paid out of their estate. While this will reduce the amount of money you might receive as a beneficiary of their will, it will prevent you from having to pay off their debts out of your own finances. In the event that your loved one passed with more debts than assets, their estate is considered insolvent, which means that the creditors will not receive full payment of everything that is owed. In that situation, the money in the estate will be used to pay off the debts in priority order—first the deceased’s funeral expenses, then the creditors. If you want a more detailed account of how dealing with debt after death works, you can reach out to our team to consult our experts directly.
Our team is proud to serve Barrie and surrounding Central Ontario communities, and we want to help you do what’s best for your financial situation. If you are concerned about debt after death, we encourage you to give us a call to get the expert assistance you need.
Contact Morgan & Partners Inc. Today!
FAQs About Debt After Death
Dealing with debt after a loved one’s death can be troubling if you don’t know what to expect, but most of the time, you don’t need to be worried about having to pay those debts yourself. To ease your mind and inform you about what to expect about debt after death, we have answered some frequently asked questions on the topic below. Contact us if you have other questions for us.
What kinds of debt does the estate pay for?
When a person passes away and has outstanding debts, their estate is generally responsible for paying all their debts. These kinds of debts may include mortgage payments, loans, credit card balances, and more.
When is it possible for a family member to be liable for a deceased person’s debts?
Can creditors come after the death benefit paid by the deceased person’s life insurance?
Contact Morgan & Partners Inc. Today!
At Morgan & Partners Inc., we help those dealing with a loved one’s debt after death in Barrie, Brampton, Guelph, Innisfil, Newmarket, Orillia, Milton, Gravenhurst, Toronto, and Muskoka, Ontario.