No, generally heirs cannot inherit your debt, but it will reduce the amount they receive. It's important to include debt allocation as part of your estate planning or when drafting your Last Will and Testament.
When you die, the executor you named in your will must make sure that any outstanding debts are satisfied. This could include liquidating property to provide resources for creditors.
With unsecured debt (typically credit card debt), your heirs will not have to pay off the debt personally or from their own funds. The executor will have to pay the debt using other assets from your estate. If your debts exceed the value of your assets, then the creditors will be satisfied first, possibly leaving your beneficiaries with nothing to inherit.
For assistance in proper debt allocation as part of your overall estate plan, please call (443) 470-3599 today and schedule a consultation with one of our experienced Maryland Estate Planning Attorneys to learn more about Estate or Elder Law and how we can help you