What Happens to Debts of the Deceased?
Debts are normally paid out of the assets of the estate of the deceased, before distributions are made to heirs. If the estate is insolvent (the assets of the estate are not sufficient to pay the debts), then the order of payment is prescribed by provincial legislation.
If any unpaid loans to the deceased were cosigned by another person, that person will likely be liable for any balance unpaid after repayments are made from the estate.
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Original Article Source Credits: TaxTips.ca, https://www.taxtips.ca
Article Written By: NA
Original Article Posted on: September 14, 2021
Link to Original Article: https://www.taxtips.ca/willsandestates/debtsofdeceased.htm