Thursday, March 23, 2023

Paul Adam on Wills and Estates: Do children inherit parent's debt?

Most debt doesn’t transfer from a parent’s estate to a child. If the deceased did not have enough assets to pay off the debts, the creditors may require a sale of the assets of the estate to address the debt, but that’s it. 

There are some exceptions- like if a child jointly owned the debt, or acted as a guarantor, or if the deceased parent improperly offloaded assets to the child for less than market value to evade creditors. 

- Paul Adam, Toronto
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