Were supposed to sell it and pay his sizable debts, and then we get to split any leftovers.
Are my sister and I responsible for the debt that isnt paid off from the sale of the house?
Are we then financially responsible for his massive spending habits when he was alive?
But the good news is that you and your sister wont inherit a mountain of bills.
In these circumstances, you could be on the hook for his debt.
Otherwise, when your father dies, his property and debts will become part of his estate.
(There are some exceptions where assets avoid probate altogether.
If your fatherdies with more debt than assets, his estate would simply be declared insolvent.
What that means is that theres not enough money to cover all of its debts.
The probate court would decide which debts get the highest priority.
Unsecured debt, like a credit card balance, has the lowest priority.
But they wont be able to sue you and your sister over the debt.
Are you struggling to cope with financial stress?
First, take a deep breath.
Then, take a look at our roundup ofresources to help you manage your stress and your money.
All that said, dont be surprised if debt collectors contact you after your dads passing.
But there are also a lot of unscrupulous debt collectors out there.
Check out theFederal Trade Commissions poston dealing with a deceased relatives debt.
Your father may not be great at managing money.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected]or chat with her inThe Penny Hoarder Community.
