One estate planning issue that many people might want to think about is how any debts they have will impact their estate after they pass away. When a person dies their debts are generally paid out of their estate. If the estate does not have any money then the debt typically dies with the person. An exception to what this article refers to as a dying debt that dies with a person is an undead debt that can exist if a person was a co-signer or guarantor of a loan. During life it is practically impossible to get out of any student loan debt but when a person dies the debt tends to die with them. This article discusses certain steps that people can take to protect their estate from debts.
See Patrick Chism, What Happens to Your Debt When You Die?, Zing!, November 19, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
