There is no doubt that carrying debt is stressful. However,
carrying debt and the angst that accompanies it are very common in
Canada. A recent Ipsos poll revealed that most Canadians are in
debt of some kind, whether it be a mortgage or credit card debt,
and that most of those who are in debt feel burdened and stressed
out by the thought of repaying it. 1
One way to combat the anxiety of owing money is to educate
yourself about the treatment of debt at various stages. In this
blog, we provide the legal perspective on how Canadians' debt
gets paid off after death.
Does My Debt Get Passed Down?
Fortunately for debtors or the beneficiaries of a debtor's
estate, debt itself cannot be inherited. Instead, after a Canadian
dies, their estate becomes responsible for paying back the debt
belonging to the deceased. When the debtor dies, the executor of
the estate must repay all outstanding debts before transferring
assets of the estate to its beneficiaries.2
