Who is responsible for paying debts of an estate?

When a person dies with debt, the debt is limited to the assets in the estate. In other words, the executor and the family do not become responsible for the decedent’s debts. However, if there is money in the deceased’s estate, such as equity in a home or cash in a bank account, it may have to be used to pay the debts. 

Whether the debts have to be paid will depend on whether the debt is secured (like a mortgage or car loan), or unsecured, like most credit cards and medical debt. If the debt is unsecured, the creditor has to make a claim in the probate case, otherwise, the debt is waived. However, there is no way to know in advance whether a creditor will make a claim in the case, so even if there is debt, it makes sense to file a probate case to see whether the creditors will come forward.