What happens to unpaid debt after a family member dies?
CFO at Momentum Consult Riaan Verbeek says the beneficiaries only get their inheritance once all the deceased’s debts are paid off.
JOHANNESBURG - CFO at Momentum Consult Riaan Verbeek says if your parent dies and you stood surety for the debt then you’re liable to pay it off.
But he added that if there is no co-surety for the debt, then it falls away.
Verbeek said: “The debt would be written off once all the assets of the deceased have been sold; the money from the sale of the assets will be used to pay that debt. Should some amount of the debt remain after that, then it will be written off.”
He said the beneficiaries only get their inheritance once all the deceased’s debts are paid off.
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