Will I Inherit My Parents’ Debts?

While debt will not be inherited, any money that would have been passed down to you would first be used to settle their debt.

Any assets that your parents left behind will be liquidated until their debt is paid off. MIND AND I/Shutterstock

This week, as I reached into the mailbag, I pulled out two questions, neither of them with easy answers. I was tempted to set them aside and try again, but I decided to tackle both, knowing that my letter writers are not the only ones facing these kinds of financial situations.

Dear Mary: If my parents are in debt and they die, who pays the bills? I am terrified of inheriting my parents’ debts.—Bethany