Dealing With Debts As An Executor

It is a common misconception that a person's debts die with them. After you die your debts become the responsibility of your estate. If you are an executor of an estate, you may need to deal with debts that have been left behind. Any outstanding debts owed by the deceased at the time of death, such as credit card bills or loans, must be taken into account when valuing their estate. For debts owed jointly, including mortgages or joint loans, the deceased's share of the outstanding amount must be taken into account.

Dying with significant debt is more common than people think, according to Age UK, one in 50 people in their 70s has problem debts. Any estate may have debts to be considered, even if the deceased was wealthy, for example, it is reported that Michael Jackson accumulated around $500 million worth of debt before he died due to his lavish spending on maintaining his Neverland estate as well as poor money management and legal expenses.