After a parent or spouse passes, the phone calls often don’t stop. Credit card companies, medical billing offices, and collection agencies may reach out to family members asking for payment. Understandably, a lot of people wonder: am I on the hook for this?
In most cases, the answer is no. Kansas families generally don’t inherit a loved one’s debt. But there are exceptions, and the way debts are handled during probate can affect how much, if anything, is left for the family.
The General Rule: The Estate Pays, Not the Family
When someone dies, their debts become the responsibility of their estate, meaning the money and property they left behind. If the estate has enough, debts are paid before anything goes to heirs. If the estate doesn’t have enough, many unsecured debts simply go unpaid.
Children, siblings, and other relatives generally aren’t personally responsible for a loved one’s debts just because they’re family.
When You Could Be Responsible
There are some situations where a family member may be responsible:
- You cosigned the loan. A cosigner is responsible for the debt whether or not the other borrower is living.
- It was a joint account. If you were a joint account holder on a credit card or loan (not just an authorized user), you may owe the balance.
- You’re a surviving spouse in certain situations. Depending on the type of debt and how it was taken on, a spouse may have some exposure. This is worth asking an attorney about.
- You inherited property with a lien. A mortgage or car loan stays attached to the property. If you want to keep the house or car, the loan generally has to be paid or refinanced.
How Kansas Handles Debts in Probate
If an estate goes through probate in Kansas, the personal representative (executor or administrator) has to give creditors notice. That includes publishing a notice in a local newspaper once a week for three weeks and giving actual notice to creditors the estate knows about or can reasonably find.
Under K.S.A. 59-2239, creditors generally must present their claims within the later of:
- Four months from the first published notice, or
- 30 days after receiving actual notice, if the creditor is known or reasonably ascertainable
Claims that aren’t presented on time are generally barred. And if no probate case is opened within six months after the death, creditors generally lose their ability to make claims against the person’s property, except for liens that already existed at the time of death, like a mortgage.
Who Gets Paid First?
Kansas law sets an order of priority for estate debts. Reasonable funeral expenses and certain Medicaid (medical assistance) claims come near the top, followed by administration costs and expenses of the last illness, and then other categories such as judgments and general debts. If the estate can’t cover everything, higher-priority claims are paid first.
This order matters for the executor. Paying the wrong creditor first, or handing out inheritances before the claim period ends, can leave the executor personally responsible.
What About Assets Outside Probate?
Some property passes outside probate, such as life insurance with a named beneficiary, retirement accounts, payable-on-death accounts, and property in a funded living trust. These assets often go straight to the named person. That’s one reason it’s important to coordinate beneficiary designations with your estate plan.
Tips for Families Dealing With Collectors
- Don’t agree to pay a debt over the phone until you know whether you’re actually responsible.
- Ask the collector to send the request in writing.
- Don’t use your own money to pay a loved one’s debts out of guilt or pressure.
- Keep a list of every creditor who contacts you, and give it to the personal representative.
- Talk to an attorney before distributing any property.
If the calls are aimed at your own debts, not your loved one’s, our post on what to do when creditors call can help.
Help From a Kansas Probate Attorney
Settling an estate while you’re grieving is hard enough without guessing about creditor deadlines. Bloom Legal Advisors helps families with probate in Johnson, Miami, and Wyandotte counties, from the first filing through final distribution. Learn more about how a probate lawyer can help, or schedule your probate meeting. Call us at (913) 954-5151.
Want to make things easier on your own family someday? A solid plan helps. Here’s how an estate planning attorney saves your family stress and money.
Frequently Asked Questions
Do I have to pay my parent’s credit card debt after they die in Kansas?
Usually not. Debts are paid from the estate. Unless you cosigned or were a joint account holder, you generally aren’t personally responsible.
How long do creditors have to file a claim against an estate in Kansas?
Generally, the later of four months from the first published notice to creditors, or 30 days after actual notice for known creditors. If probate isn’t opened within six months of death, most claims are barred.
What happens if an estate doesn’t have enough money to pay its debts?
Debts are paid in the order of priority set by Kansas law. Lower-priority debts may go partly or fully unpaid, and family members generally don’t have to cover the difference.
Can creditors take life insurance paid to a beneficiary?
Life insurance paid directly to a named beneficiary generally passes outside probate. Speak with an attorney about your specific situation.
Can an executor be personally liable for estate debts?
An executor who pays debts out of order or distributes assets before the claim period ends may face personal liability, which is why legal guidance is important.
