In the event that your parents pass away with more liabilities than assets, who inherits their credit card debt?

Inheriting debt can be a complex situation, but generally, individuals are not responsible for the debts of their parents simply because they are their children. When a person passes away, their estate is responsible for settling any debts, which include credit card debts. If the estate does not have sufficient assets to cover these liabilities, the debt typically goes unpaid, and creditors cannot pursue the individuals for the debt.

Furthermore, creditors must bear the loss if there are no remaining assets in the estate to settle the debts. In this case, the children, as heirs, do not inherit the credit card debt directly. The debt does not become the personal responsibility of the children or other family members unless they were co-signers or jointly responsible for the account in question.

This reflects important principles from estate law regarding how liabilities are managed upon a person's death, reinforcing that individuals are not personally liable for another's debts upon their passing, provided there is no co-signing or personal guarantee involved.