When a family member dies, unpaid credit cards, medical bills and other debts do not simply disappear. At the same time, you generally do not become personally responsible for those debts just because you are the person handling the estate or receiving an inheritance. In Ohio, the estate usually handles valid debts through the probate process.
Knowing who pays a deceased person’s debt can matter when you are serving as an executor or expecting to inherit property. Ohio law sets rules for which claims the estate pays and how available assets get distributed.
Does the estate pay the deceased person’s debts?
The executor or administrator generally handles valid claims against the estate. Ohio law also sets an order for paying certain debts when the estate does not have enough money to cover every claim.
Some common expenses and debts that may arise during probate include:
- Estate administration costs
- Funeral and burial expenses
- Final illness expenses
- Nursing home expenses
- Valid creditor claims
These debts do not all receive equal priority. Ohio law sets the order for paying claims, which can matter when an estate has limited assets.
Can creditors collect from family members?
Being an heir or executor does not mean you have to pay a family member’s debts from your own money. In most cases, creditors seek payment from the estate, not from the heir’s personal funds.
There can be some exceptions. For example, Ohio law may hold an heir or beneficiary responsible for certain claims. Even then, the amount owed generally cannot be more than the value of the property received from the estate.
Since unpaid debts can reduce what you receive, checking the estate’s bills and creditor claims can help show which debts the estate may need to pay before beneficiaries receive the property.
Keeping the estate on track
Debt administration involves more than paying bills. The way debts are handled can affect what property remains for the people named in the will.
For example, an estate may include a house, savings account and other property but also have unpaid medical bills or credit card debt. Looking at both the estate’s assets and debts can help show what may remain for beneficiaries.
