 TITLE: Can You Inherit Debt? CONTENT: What Kinds of Assets Are Protected From Creditors?\n--------------------------------------------------\nCertain types of assets are generally protected from being claimed by creditors when your loved one passes. Even if your spouse or family member has outstanding debt, these assets are considered \"non-probate assets\" since they have a designated beneficiary or what's called joint tenancy with rights of survivorship. This means you can bypass the complicated probate court process and receive the asset directly, regardless of whether there's a will or not.\n*   **Retirement accounts**: If your loved one has a 401(k), IRA or other type of retirement account with you listed as a beneficiary, it should go directly to you and be protected from creditors.\n*   **Life insurance**: If you're the named beneficiary for your loved one's life insurance, it will pass directly to you and can't be taken by creditors.\n*   **Living trust**: Trusts are legal arrangements that hold assets for beneficiaries and can usually bypass the probate process. There are different types of trusts, but some can help protect the estate from creditor claims, in addition to reducing taxes. END