Navigating debt when a loved one passes away

It’s always an unfortunate questions that takes place at a stressful time – what happens to the debt of a loved one when they die? When a loved one dies, the debt is not passed onto a family member or spouse, but becomes part of the person’s estate. Any assets owned by the person such as property and investments, also becomes part of the estate. The estate – not family members – will be responsible for paying off the debts, unless the debt is jointly held with someone else. Before the person’s will allows any of their assets to be inherited by their chosen beneficiaries, the estate must first pay off any remaining debts and taxes. Here is a great resource to share with anyone who needs to make sense of this at a difficult time: https://www.legalwills.ca/blog/debt-when-you-die/