Hi everyone and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm Laura Adams. I know it's a depressing topic, but at some point you've probably

wondered who picks up the tab for a dead person's debt. Are you responsible for a parent's debt after they're gone, for instance?

And will anyone inherit your debt after you depart this world?

We'll answer those questions and cover what you need to know about the financial side of death in this podcast.

The moment you die, something is automatically created.

No, I'm not talking about a Phoenix rising from the ashes or anything spiritual here.

Your physical death gives birth to your legal estate, which is simply what you own when you die,

no matter how big and fancy, or how small and simple it is.

The value of your estate is calculated by adding up all your assets,

like cash accounts, investments, vehicles, and real estate, and then subtracting out the total of everything you owe.

After you die, someone has to handle the logistics of your estate.

That person is called an executor,

and hopefully you've already named a trustworthy one in your will.

A judge will appoint an executor for you

if you die without a will.

Probate is the legal process that an executor goes through to verify your will and to

distribute your property. It can take a long time and involve lots of attorney in court fees depending on the size and complexity of your estate.

The executor may be given permission by the court to sell your possessions, to pay your debts and taxes, and to distribute what remains to those

named in your will. If you don't have a will, your remaining property goes to your relatives

according to a formula determined by the state in which you live.

That means everything you own could go to family members that you haven't spoken to in years.

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