Vanishing Debt #debt #finance

29 Mar 2023 · 1 min

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0:32

In this short explanatory video, Jerry Taylor clarifies that most common debts—mortgage, medical, and credit‑card balances—do not disappear when a borrower dies. Mortgages are the responsibility of any co‑borrower or the estate if the family wishes to keep the home. Medical and credit‑card debts are generally handled by the deceased’s estate, though families may negotiate settlements. The only debt that is automatically discharged upon the borrower’s death is a federal student loan. Taylor uses this fact to encourage older adults to consider further education, and ends with a call to follow him for more financial insights.

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.