Who is responsible for debt after death?

By DRN Solicitors

09 Nov 2021

calculator-_-finance-_-wealth-_-probate-1024x683.jpeg

When it comes to debt and inheritance in the UK, there are a number of commonly held misconceptions. Many people believe that when a person dies, their debt dies with them, however this is not the case. Another common misconception is that the task of paying off a loved one’s debts immediately falls to family members after they’re gone. 

We’ve put together this handy guide on debt and inheritance to help with clarifying who is responsible for debt after a person’s death.  

What will happen to my debt when I die? 

Many people believe that any debt they have accrued in their lifetime will be written off when they die, however this is simply not the case. 

When putting together your will, you will be encouraged to outline the person you would like to take care of your estate - your property, finances, personal possessions, etc. - in the event of your death. 

If you have accrued debts through taking out personal loans, credit cards, or a mortgage, these will be taken into account with the review of your estate, and your assets will normally be used to pay off your debts. Your executor - the person you have entrusted with the task of managing your estate - will be responsible for organising these repayments. 

Before they are required to begin considering making repayments for your debt, your executor will be permitted to use some of your assets to cover the cost of your funeral and any administration fees associated with your death if you do not have applicable insurance policies in place. 

Once the costs of your funeral have been taken care of and the executor has acquired a grant of probate, they can then commence the process of repaying your debts. This will need to take place before any money can be distributed to friends and family members in the form of inheritance (as you might have outlined in your will). 

What will happen if I owe money to a number of creditors? 

If you owe money to a number of different creditors, your executor will be required to repay those creditors according to a specific order, which is as follows: 

First: Secured debts (such as mortgage repayments)  Second: Priority debts (such as income tax and council tax)  Third: Unsecured debts (such as credit cards and utility bills) 

What will happen to my mortgage when I die? 

If you have a mortgage in place, your partner (i.e. your spouse, registered civil partner, or cohabiting partner) will be legally required to continue making mortgage repayments in the event of your death, however they will not be required to pay off or contribute towards any of your other debts (credit cards, loans, etc). 

If you are the sole owner of your property, your executor will usually be required to treat your mortgage as any other debt and use your assets for repayment. Depending on how much is still owed on your mortgage, this may mean having to sell the property in order to clear the debt. 

How are joint debts impacted by a person’s death? 

Examples of a joint debt include joint mortgages and joint current accounts with an overdraft. In most cases where two or more people have taken out a joint loan together, the outstanding debt will simply be passed to those people in the agreement who are surviving. 

If you are joint tenants in a property, that property will not form part of your estate (except for the purposes of calculating Inheritance Tax). In such instances, the surviving tenant automatically will automatically receive the deceased’s share and ownership of the property.

Contrarily, if you are joint owners under tenancy in common, this will mean you each own defined shares of the property’s equity. As such, in the event of your death, your share will not pass automatically to the surviving tenant, but rather will be distributed according to the wishes outlined in your will. 

What will happen to my mortgage debt if I don’t have life insurance? 

If you have not taken out a life insurance policy covering your mortgage, and if the beneficiaries named in your will do not wish to obtain the mortgage, or do not qualify for a mortgage, then your executor may choose to sell your property in order to pay off the outstanding debt. 

Will my family have to pay my debts when I die? 

In the UK, debt is not inherited, so your friends and family, including a partner or spouse, will not become responsible for your individual debts in the event of your death. 

The only time a family member or friend will be required to take responsibility for your debts is if you entered into a joint loan or agreement with them. 

Will my credit card debt die with me? 

It is a commonly held belief that credit card debts are automatically written off in the event of a person’s death, however this is incorrect. Any debts you leave behind on your credit card are not automatically written off, but should be paid off with your assets. It is only in the instance where there is not enough money left behind in an estate that credit card debt may be written off. 

How can I make a will? 

Making a will doesn’t need to be a complicated or daunting task. In fact, with the expert solicitors here at DRN to guide you through the process, making your will is simple, straightforward and stress-free. 

Having a written will in place is the only way to ensure your wishes are met upon the event of your death. Merely outlining your wishes to a member of your family or a close friend is not enough to ensure your estate is handled as you would like it to be. 

Our solicitors, based in Lancashire, have years of experience in handling wills, probate and inheritance, and are each dedicated to providing the very best standards of client service, including with the provision of sound, reliable advice that you can trust. 

Make a start on writing your will today by filling out our online form, or call our offices for more information. 

Latest news

1

Financial Affairs support the Red Rose Award winners' reception Networking photograph

Financial Affairs support the Red Rose Award winners' reception

24 Apr 2025

2

Lancaster University unveils cutting-edge computing and cyber security facilities Head of Lancaster University's School of Computing and Communications Professor Nigel Davies, Chris Ensor, Vice-Chancellor Professor Andy Schofield and Pro-Vice-Chancellor (Engagement) Professor Sarah Kemp

Lancaster University unveils cutting-edge computing and cyber security facilities

24 Apr 2025

3

Northcote announces new owners Alf and Clare Ellis as Lisa Goodwin-Allen returns as chef patron-director Craig Bancroft and Lisa Goodwin-Allen

Northcote announces new owners Alf and Clare Ellis as Lisa Goodwin-Allen returns as chef patron-director

24 Apr 2025

4

Major shareholder makes Inspired takeover bid inspired-500x500.png

Major shareholder makes Inspired takeover bid

23 Apr 2025

5

Nominate your favourite family-run business in Lancashire. Thompsons meeting (1).png.png

Nominate your favourite family-run business in Lancashire.

22 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Preston Freelancer Meet-Up: April
1.png.png
LBV Hub Networking
25 Apr 2025 - 25 Apr 2025

Preston Freelancer Meet-Up: April

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin