What Happens to Your Debt When You Pass Away

When you pass away, your debt doesn’t go to the grave with you–the creditors still want their money. Usually, they’ll recover what you owe from your estate or your assets meaning your family gets less of your wealth. I know, scandalous.

So, who can inherit your debt? Cosigners, joint-owners, and spouses can all inherit your debt.

These are the types of debts that can be inherited:

  • Private student loans
  • Credit card or any consumer debt
  • Cars
  • Mortgages

So how can you protect your wealth?

Create a living trust–it protects assets like life insurance policies, retirement plans, brokerage accounts and other assets from creditors when you pass

There’s more strategies, this is just the tip of the iceberg.

Found this helpful? Make sure you click the follow for more of Greenwood Daily.

About the Host

Rianka R. Dorsainvil

Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.

As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.

Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.