debt inheritance?

[m103]

Hi!

I understand there things like estate/inheritance taxes but was wondering if parents could pass their debt to their children and if so, if there is any way children can do to protect themselves.

I tried searching on this topic but haven't had much luck. I am gravely concerned by the amount of debt my father is in, largely attributed by his bad spending habits, and certainly don't want to have to take over his debt or be part of it if he passes away.

Any advice will be grately appreciated.

Thanks!

 

[Michael Wechsler]

I'm not sure if I understand you correctly and let me know if I'm missing the point that you are making. There is no way I can see that the children can be held liable for the debt of an estate unless the children agree to be responsible for such debts. Debts of the estate come out of the estate or what would be passed to the children. Debts of the estate do not come out of what is rightfully the property of the beneficiaries, e.g. the children don't have to pay outstanding amounts on a mortgage of a house left to them. The only way the children will have problems is if they agree to assume the liability for debt attached to assets passed to them, for example, the mortgage on a house.