This Debt Disappears When You Die.

6 May 2022 · 1 min

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In this short video, Jerry Taylor explains that most debts do not disappear when a person dies. He outlines how mortgage debt can remain if there is a co‑borrower or if heirs assume the loan, and how medical and credit‑card debts are typically paid from the deceased’s estate (with the possibility of negotiation). He then highlights the sole exception: federal student loans are discharged upon the borrower’s death. He uses this fact to encourage older adults to consider pursuing advanced degrees, noting that the debt would be wiped out if they pass away. The video ends with a call to follow him for more informational content.

Chapters

Your debt generally does not go away when you die, but there is one type of debt that disappears. It's not mortgage debt. If there's a co-borrower, they're responsible, or if your family wants to take over the home, they have to assume responsibility for the debt. It's not medical debt. Your estate will likely be responsible for that. And it's not credit card debt. Again, your estate will be responsible, but you probably can negotiate with them. So the debt that dies with you is federal student loans. So if you're in your 70s and you still want to get that PhD, have at it. Now follow me and I'll keep you supplied with interesting stuff like this.