What happens to your debt when you die + MORE Mar 3rd

Here are Rewards Canada’s Top Travel Credit Card Sign Up offers for the month of March 2023! This is not a ‘best’ credit card list like our Top Travel Rewards Credit Card rankings but instead a look at cards that have very good acquisition (welcome/sign up) offers. It must be said however many of the […]
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Ask MoneySense
I carry a lot of credit card debt and haven’t made a dent in my mortgage. I’m in my 60s, and I’m starting to think about next steps for my family. After I die, will my family inherit my debt?—Terry

Thanks for your question, Terry. You’re definitely not alone in worrying about how your loved ones will be affected if you die with outstanding loans or while carrying a balance on your credit card.

We’ll walk through exactly what happens to your debts when you die, including credit card debt, mortgages and co-borrowed debt. Then we’ll explore ways to mitigate the burden these debts might have on you and your family.

Who’s responsible for debt after death?

Is debt passed on to family members like real estate or heirlooms? The answer depends on a few factors, like the amount of debt you have, who’s listed on the accounts, and your insurance coverage.

After death, debts generally fall to the estate. If you have a will, your executor will create an inventory of your assets (cash, investments, real estate, etc…