Key Facts

• Debt remains even after the borrower dies; it does not just go away.
• Creditors often continue charging interest on unpaid debts after death based on the original loan terms.
• Types of debts that can keep accruing interest include credit cards, mortgages, and personal or auto loans.
• Interest and debts are generally paid from the deceased person’s estate, not the family’s personal money.
• The estate executor handles debts during probate by collecting assets and paying creditors in a specific legal order.
• If the estate lacks enough money, some creditors may only get partial payment or none at all.
• Family members usually aren’t responsible for the debts unless they co-signed or live in states with community property laws.
• Probate laws about post-death interest vary by state, so executors need to check local rules.