What happens to debts in an intestate estate?

When someone dies without a will, or intestate, their estate is subject to a set of laws known as intestate succession law. In Washington, these laws dictate how any debts are handled upon the death of an intestate person. Upon a person’s death, any debt they may have had needs to be paid before their estate can be distributed. Debts of the deceased will be paid from their estate, however not every debt is given equal weight. Generally, debts of the deceased are divided into two categories: secured and unsecured. Secured debts, such as mortgages and auto loans, get paid first because the lender has a claim, or lien, against the estate. Anything that can be repossessed or foreclosed upon must be paid first. Unsecured debts, such as credit card bills and medical bills, are paid next. However, not all creditors are paid in full and whatever remains of the estate is divided among the heirs. It is important to note that in Washington, family members are not held responsible for a deceased person’s debts unless they co-signed a loan or credit card. Additionally, a spouse’s estate can be held liable for any debts the deceased spouse had, however a surviving spouse can’t be held liable for unpaid debts of the deceased spouse if the surviving spouse was not a co-signer. In the event that there are not enough assets to cover all of the debts an estate can take on, the creditors to the estate will receive whatever is available in full satisfaction of the debt. Any remaining debt is considered discharged and the creditors are not able to pursue any of the heirs for the unpaid debt.

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What happens to debts in an intestate estate?

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