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Will your family be saddled with your debts when you die?

On Behalf of | May 10, 2022 | Estate Planning |

Today, most people will have some sort of debt when they pass away. If you have debt, you may wonder what will happen to it when you die. Will it be resolved, or will your family members have to take on the burden?

Understanding your debt and what happens to it when you pass is a must. This will also help you know if you should create an estate plan to help with this situation.

Settling the debts of a deceased Kentuckian

After you die, someone is appointed to handle the distribution of your estate. This individual is a personal representative, and they serve as an administrator or executor.

In Kentucky, when you create a will, you will name your executor. This is required for the will to be valid. The administrator will be appointed by the court if you die without having a will.

The executor and administrator of your will must manage all parts of your estate, which includes handling all debts. However, if you pass away without a will in Kentucky, then your estate will go into the probate process.

Once your estate enters the probate process, creditors have six months to make a claim and collect what they are owed. All debt claims must be submitted in writing.

Taking care of your debt after you pass

If you are worried about your debt situation and what will happen to what you owe after you pass, you can find plenty of resources with helpful information. Knowing what you need in place to protect your family from these burdens can also be beneficial. Creating an official estate plan will also be beneficial in these situations.