One of the biggest worries we hear from older clients is: “If I die with debts, will my children have to pay them off?”
It’s a scary thought. Here’s the truth: in the UK, personal debts are not passed on to your family.
How debts are handled when someone dies?
When a person passes away, their debts are repaid (if possible) from their estate. That means any money, property, or assets they leave behind. If there isn’t enough to cover the debts, those debts are usually written off.
Your children, partner, or relatives will not have to pay your debts from their own money, unless they are:
- Jointly named on a debt (e.g. joint loan, joint bank account overdraft)
- A guarantor for your borrowing
Otherwise, your family cannot be chased for your debts.
Why this worry is so common?
We’ve spoken to so many near-retirees who hide their debt because they’re worried about “burdening” their children. In reality, the bigger risk is not asking for help and letting debts grow.
By tackling your debts now, you:
- Protect your family from stress and confusion later
- Keep your estate as intact as possible
- Ease your own anxiety, knowing there’s a plan in place
What you can do today
If you’re worried about debt and family:
- Get a clear view of your debts, we’ll help you list them all
- Explore solutions like a DMP or IVA to get them under control
- Protect essentials first (housing, bills, food) before paying unsecured debts
- Consider updating your will, so your wishes are clear
The FCA bit (what you should know)
- A DMP or IVA will affect your credit file
- Fees apply to some solutions (always explained clearly)
- Free debt advice is available from charities if you prefer
- Getting help does not make things worse for your family, it makes things clearer
Our message to families
Debt doesn’t have to be a secret. Getting advice now means you can protect yourself and your loved ones, instead of worrying in silence.
