Submitted by GraciousBassist t3_z8xq65 in personalfinance
I have recently been contacted by a lending company which my parents had consolidated debt through about taking financial responsibility for their debt. The reason for the post is that my parents have been deceased for a few years now (9 years for one, 3 for the other). I recall finding information originally that if not contacted about financial responsibility for the loans within 1 year of passing that they have no right to attempting to force the responsibility or to any amount of the estate at that point. Is it the right decision to inform the lender that I will not be taking the financial responsibility due to the time since my parents passing? Any advice is greatly appreciated.
Grunchlk t1_iydw24y wrote
Did you co-sign on any loans or debt consolidation agreements? I would politely ask this company to explain why it is they believe you're responsible for any portion of it and then back that up with a written document mailed to you.
Generally speaking, in the US anyway, when a person dies their estate now owes the debt. The is what probate is for, through probate the executor consolidates the decedent's assets, pays their debts, and this disburses the funds to the heirs.
It's more complicated than that, but that's the gist. Many companies will try to guilt you into taking ownership of the debt. If you're the heir of an estate that when through probate and you didn't co-sign on any loans then they're just trying to get you to give them money for free.