In most provinces, countries, states, etc. only those who have signed the contract for the debt, and the "Estate" of someone who has passed away owes back debts. So things that you own are to be sold and liquidated to pay off debts. Once all debts have been paid, only then can things of the estate be given to heirs.
If you owe 80k and have 100k in the bank in cash, you can just pay it off. Then your house or car or belongings, etc. go straight to the heirs.
However if you owe 80k and have only 60k in assets, those things would have to be sold to pay off the estate's dues and there would be no inheritance.
Thoughtwolf t1_j6h2wpx wrote
Reply to comment by VerlinMerlin in Mom and son graduate college together, fulfilling 18-year promise by Sariel007
In most provinces, countries, states, etc. only those who have signed the contract for the debt, and the "Estate" of someone who has passed away owes back debts. So things that you own are to be sold and liquidated to pay off debts. Once all debts have been paid, only then can things of the estate be given to heirs.
If you owe 80k and have 100k in the bank in cash, you can just pay it off. Then your house or car or belongings, etc. go straight to the heirs.
However if you owe 80k and have only 60k in assets, those things would have to be sold to pay off the estate's dues and there would be no inheritance.