 TITLE: What Happens to Debt When You Die CONTENT: Which Debt Can Be Inherited?\n----------------------------\nIf you leave a will behind, the person appointed to distribute your estate (the executor) will collaborate with your creditors and survivors to settle any outstanding debts you may have. A probate court will handle this if there is no will.\nTo determine what debts you owe, the executor or probate officer will likely access your credit report and take a look at your open credit accounts. Then, they'll figure out which debts are inherited and must be paid off. Inherited debts may include:\n*   **Joint debts**: The most common example of a joint debt is a mortgage. If you took out a mortgage with your spouse, they'll be on the hook for paying it off if you die. Car loans, credit cards, lines of credit and almost any type of debt can be joint debts.\n*   **Cosigned debt**: A cosigner agrees to pay your debt in the event you default on a loan. If you had someone cosign any of your loans, they'll be responsible for the debt if you die. For example, if you had a credit card that only you used but your parent cosigned years ago when you were young, they'll be required to cover it.\n*   **Home equity loan on an inherited house**: A home equity loan can allow you to borrow money against the value of your home minus the amount of your outstanding mortgage. The home equity loan on an inherited house becomes an inherited debt upon your death.\n*   **Debt in community property states**: There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. If you live in a community property state or Alaska, which gives both parties the option to make their property community, your spouse may be liable for certain types of debt even if the loans were solely issued to you.\n*   **Timeshares**: If you purchased a timeshare and put the names of your heirs' on the deed to make it more convenient for them to use the property upon your death, your children will inherit the timeshare and be forced to pay the annual maintenance fees that come with it. END