Quote:
Originally Posted by OrangeBlossomBaby
Whoever inherits the estate, also inherits the debt unless an Executor is able to pay it off from bank assets. Once the actual monetary assets are depleted, the rest has to be handled so as to minimize tax responsibility and maximize whatever the beneficiary is allowed to receive.
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This is not the case in Florida. If the deceased person’s estate doesn’t have enough assets or cash to pay all the debts then in almost all circumstances those debts go unpaid and cannot be transferred to the people who inherit the estate. Per the Federal Trade Commission website - “Does a debt go away when the debtor dies? No. The estate of the deceased person owes the debt. If there isn't enough money in the estate to cover the debt,
it typically goes unpaid.”
There are a few rare exceptions such as having co-signed for the debt or living in a community property state like California (Florida is not a community property state.) Now I am not an attorney and this shouldn’t be construed as legal advice so you should seek the advice of a Florida Elder law attorney if you are involved in settling or inheriting either part or the entirety of an estate.