Does a persons debt disappear when they pass away or is the debt transferred to their loved ones?
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Davidove20
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
It's not really a case of debts "passing to your loved ones". Joint debts will defer back to any surviving debtors and single named debts will become a debt on your estate and all debts must be settled before any assets (ie cash) can be paid out. The top ranking (and priority) debts on an estate are IHT and other HMRC due taxes and usually the only debts allowed to be paid before an estate can be wound up will be the cost of funeral arrangements.
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