When someone passes away, it is natural for their loved ones to think about the emotional and financial challenges that may follow. One of the most important things to consider is what will happen to any debts the person leaves behind. In Illinois, as in many other states, debts do not disappear when someone dies. Instead, the deceased person’s estate is responsible for paying those debts before any assets are distributed to heirs.
Understanding how debts are handled can help families make informed decisions during the estate planning process. An experienced Wheaton, IL estate planning lawyer can review your options for addressing your debt after you pass away.
How Is a Deceased Person’s Debt Handled?
In Illinois, when someone passes away, their estate—consisting of all their assets, like property, savings, and investments—is responsible for paying off any outstanding debts. These debts can include things like mortgages, credit card balances, medical bills, and car loans. The responsibility to pay off debts does not automatically fall to the family or the person’s heirs unless they are co-signers on loans or have a legal obligation to pay.