Debt Category Archives — Houston Estate Planning and Elder Law Attorney Blog Published by Houston, Texas Estate Planning and Elder Lawyers

How to Handle Undisclosed Debts During Probate Administration

Published on: January 14, 2025 | By David W. Miller

If you are the executor in charge of overseeing the probate process for a loved one’s estate, there are certain duties you must keep in mind. One of these duties is sorting through the decedent’s debts. While these debts can certainly elongate the probate process, there are nonetheless important to navigate with care and attention. If you fail to pay an executor’s debts during probate, there could be serious consequences down the line, and it could also prolong the probate process even more than is already necessary. On today’s blog, we cover how to handle undisclosed debts during probate.

The Executor’s Responsibility

As executor, it is your responsibility to sort through the decedent’s assets and take account of what that person left behind. You should conduct a thorough review of bank account statements, properties, life insurance policies, investments, and anything else that the decedent owned. Importantly, too, you must review the decedent’s debts in order to understand what that person owed and how many creditors might be seeking payment from the estate.

Known v. Unknown Debts

Some of these debts will be obvious, in that the decedent will have left notice of the debts and the creditor will be a known entity. You have a responsibility to inform these creditors of your loved one’s death and settle up what the decedent still owes. Other times, however, you might not be aware that a debt or judgment exists. After conducting a thorough review of the decedent’s estate, you have a duty to publish a notification in a local newspaper to let unknown creditors know about the death of your loved one. This way, if a creditor finds out that the person owing them money passed, they can take the necessary steps to identify themselves and then receive the payments they need.

What Happens When Someone Dies with Unpaid Debts in Texas?

Published on: November 30, 2021 | By McCulloch & Miller, PLLC

During the estate planning process, Texans will try and resolve as many issues as possible. However, sometimes these problems fall through the cracks. While most individuals try to ensure they have no debts when they die—at least to the best of their ability—sometimes this is unavoidable. When this occurs, people may have questions about whether the debt is still owed and who pays the debt. Because this can be a very stressful situation, below are answers to some of the most common questions and how to handle each situation.

Does Your Debt Disappear After You Die in Texas?

Unfortunately, if a person passes away with debt, this debt is not automatically erased. Generally, your estate—through the person you name as executor of the estate—is required to pay off your debt. The process itself is called probate. Probate is accomplished through using the assets listed in the estate plan, such as cars, homes, bank accounts, and other assets, to settle the debt. In doing so, a judge will determine the estate’s total value, pay down the debt, and distribute the remaining estate assets to the heirs. The heirs will not be paid until the debt is handled.

What Happens to Credit Card Debt When Someone Dies in Texas?

Published on: September 3, 2019 | By McCulloch & Miller, PLLC

Here’s a legacy that you may not want to leave for your family to pay: your credit card debt. It doesn’t go away when you die.

Three out of four consumers die in debt, says Yahoo Finance’s recent article, “What Happens to Credit Card Debt When You Die?” That means the executor has to pay the debt, and the money comes from what might have been an inheritance. If you have many debts, the inheritance may become very small—or vanish altogether.

If you’re worried about your family being stuck with your debts after you die, know your rights and work with an estate planning attorney to help protect your assets.