Question Details: One of my parents owes the IRD a substantial amount of money - far more than the total worth of their estate is likely to be. Will I become personally liable for money my parents owe IRD when they pass away?
Filed under Wills/Estates | 3343 View(s)
No, you won't become personally liable for your parent's debt, as long as the debt was only in your parent's name.
If your parent dies without enough money to pay off the debt, their estate will be called an insolvent estate. The estate will pay off outstanding debts in a set order (usually starting with funeral costs) before anything is given to people named in the will, or until the money runs out.
The debt owed to IRD must be repaid from the estate before any payments are made to people named in the will.
It may be helpful if your parent considers life insurance to protect their estate from becoming insolvent when they pass away.
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