Hello and welcome to the Money Girl Podcast. My name is Laura Adams. I'm a

personal finance expert and author of multiple books including Money Girl Smart Moves to Grow Rich.

You can learn more about me at Laura D Adams.com.

Today's topic is about a terrible but very important topic. What happens to

debt when you die? Just about all of us will have to deal with the death of a

loved one someday and perhaps their debt.

When you die, there's typically a lot of unfinished business to figure out, and some of the rules

may surprise you.

If you've ever worried about having to pay a deceased family member's debts or

wondered who will pay yours, this show will give the facts about debt and death

and hopefully put your mind at ease.

So let's talk about what happens when you die.

After you die, everything you leave behind becomes its own legal entity called your estate.

What happens to your estate depends on whether you die with or without a last will and the state where you lived.

Every estate must have someone who puts things in order and this person is called an executor.

He or she distributes your property, pays your

outstanding bills, and settles your debts. I strongly recommend that you

create a last will and name someone in it who you trust to be your executor.

If you don't the court will appoint an executor to handle your affairs for you.

Just remember that it won't be someone you know and they may not carry out your wishes the way you would have liked.

The executor's job is to protect your assets, such as your home, household belongings, vehicles, bank accounts, and investments,

and to pay your liabilities or debts, such as mortgages, credit cards, loans, and taxes.

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